The value of Notcoin (NOT), a cryptocurrency strongly supported by social media giant Telegram, has fallen sharply. This happened within the first week of listing.
The cryptocurrency is part of Telegram-based gaming, which has a user base of 35 million. Investors who bought into the hype are now suffering huge losses.
Cryptocurrency analyst predicts further decline in Notcoin price
Notcoin debuted on the Toncoin network last week. Approximately $1 billion worth of NOT tokens were airdropped to eligible investors.
The token has also secured high-profile listings on major exchanges, including Binance. Initially, the buzz about Notcoin reached an all-time high of $0.037. Notcoin ranked 8th in terms of trading volume, exceeding $1.4 billion within 24 hours of listing.
The project has received considerable attention thanks to the endorsement of Telegram founder Pavel Durov. Durov publicly praised Notcoin on his Telegram channel, highlighting the project’s rapid growth and the transition from in-game currency to real-world currency for users.
Read more: 5 Best Toncoin (TON) Wallets for 2024
On May 17, Durov thanked the Notcoin community for their generous donation of over 1 billion NOT tokens, worth approximately $6.8 million. Durov also said he would hold on to the token until its value increases to $680 million, or 100 times its current value.
However, this excitement quickly faded as NOT prices began to plummet. Within a week, the token’s value had fallen by more than 85%, trading well below its debut price.
The sharp decline may be due to investors quickly selling airdropped tokens to lock in profits rather than holding on for potential future gains. This massive selling led to a severe oversupply in the market, pushing prices down further.
Crypto analyst “Crypto Patel” has a bearish outlook on Notcoin’s future price movements.
“Chart analysis shows a small rise towards $0.0060-$0.0065 before the next leg of the decline to $0.0040,” Patel said.
Read more: 11 Cryptocurrencies to Add to Your Portfolio Before Altcoin Season
This analysis reflects the current sentiment in the market, with many investors still remaining cautious about the token’s near-term prospects.
In response to price volatility, the Notcoin team outlined future campaigns, products, and offerings to increase user engagement and token stability. These initiatives include expanding staking benefits and providing access to exclusive allocations in different launches for Gold and Platinum level users.
The team encourages users to stake their tokens, but emphasizes that there is no intention to lock anyone out or force them to stay.
“You are free to unstake your Notcoins and withdraw them on-chain at any time. yes. You will lose level benefits and pool access. But we don’t want to lock anyone out or force them to stay. Notcoin is a free choice,” the Notcoin team wrote.
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