Monad price will be in the spotlight this week as its developers launch its mainnet following a successful initial coin offering on leading US exchange Coinbase.
summation
- Monad raised $269 million from investors through a token sale last week.
- Developers plan to begin the mainnet launch on Monday.
- MON tokens will begin trading on Monday and are likely to fall, according to records.
Monad, an EVM-compatible layer 1 network, raised $269 million in the most successful ICO of the year. More than 85,000 participants purchased MON tokens, a sign that there is momentum. Most importantly, the ICO was oversubscribed by 1.43x.
The next step now comes on Monday when the mainnet launches. It will also debut on top exchanges, including popular exchanges like Bybit, Coinbase, and Bybit.
This list allows ICO participants, investors and insiders to close their positions. Additionally, outsiders who missed the ICO will also be able to purchase and potentially hold on to the ICO to gain more profits in the future.
Investors with a long-term perspective believe that Monad is a true disruptor in the cryptocurrency industry. Plus, it has 200+ validators, faster speeds than other networks, EVM compatibility, and partnerships with top developers including LayerZero, Pyth Network, and Chainlink.
Why Monad price may plummet after airdrop
Nonetheless, there are several potential reasons why MON’s price plummeted following the token’s listing on Monday. First, it is common for ICO investors to dump their tokens after an airdrop occurs. This explains why most tokens like Pi Network and LayerZero fall after earnings.
Second, this airdrop will provide a great opportunity for investors such as Paradigm, Dragonfly, Electric Capital, Castle Island, etc. to realize profits. Therefore, there is a possibility that part of the investment may be sold after the airdrop.
Third, history shows that most newly launched tokens drop by double digits. Good examples are top tokens such as Trump Coin, World Liberty Financial, Wormhole, Somnia, and Keeta.
Additionally, the Layer 1 and Layer 2 industries are highly saturated, with networks such as Plasma, Ethereum (ETH), Solana, and BNB accounting for the largest market share in the sector. More networks from companies like Robinhood and Circle are also expected to come online soon.
Tokenomics may cause the Monad price to fall as insiders and the team hold over 50% of the tokens and public sales account for less than 8%.