๐๐๐ค๐ช๐ก๐ ๐๐ค๐ช ๐ฝ๐ช๐ฎ ๐๐๐๐ข ๐พ๐ค๐๐ฃ๐จ ๐ก๐๐ ๐ ๐๐๐ฃ๐ฏ๐ค? โโ
Negative sentiment is a major reason why new crypto projects aren't performing well. Retail investors often expect a price surge after a new coin is listed on a major exchange. However, this trend has shifted in recent months, and Renzo, a recently launched project, is no exception.
Following a de-pegging incident and an airdrop allocation event, Renzo is facing strong bearish sentiment, with some calling it a scam.
โก De-Pegging Event
Recently, there was a sell-off of Renzo's ezETH token on a decentralized exchange (DEX). The price dropped to around $700 before recovering. This sell-off was likely caused by the end of Renzo's Season 1 airdrop, with users wanting to convert their ezETH back to ETH for use in other liquidity pools. This led to liquidations on leverage protocols, causing losses for users who were leveraging ezETH.(๐ธCourtesy - 0xtommy_eth).ย
๐ The Airdrop Incident
The Renzo team initially announced a 10% token allocation for airdrops, with 5% for Season 1. However, a large portion (โ ) was reserved for investors and the team. Additionally, airdrop recipients wouldn't be able to claim their tokens until May 2nd, two days after the official Binance listing.
๐ฅ Should You Invest ?
Though Team Revised Airdrop Allocation To 7% and Same day Claim as Listing . It's Advisable to Avoid investing in Renzo immediately after launch. The sentiment is very mixed, and there's no clear short-term bullish signal. Many airdrop participants will likely sell their tokens on a centralized exchange as soon as possible. It's best to wait and see how the project develops before investing. Don't be pressured by the fear of missing out and end up Being easy prey for airdrop recipients and a Exit Liquidity For others.
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