Notcoin plunged more than 85% in its first week, despite strong support from Telegram.
Investors dumped the airdropped tokens, causing a severe oversupply and falling prices.
The Notcoin team introduced staking to stabilize the price, and analysts predict that the price will fall further.
Notcoin (NOT), a cryptocurrency heavily backed by social media giant Telegram, has seen a sharp drop in value. This happened within its first week on the market.
The cryptocurrency is part of a Telegram-based game with a user base of 35 million. Investors who bought into the hype are now facing significant losses.
Cryptocurrency Analysts Expect Notcoin Price to Fall Further
Notcoin debuted on the Toncoin network last week. Nearly $1 billion worth of NOT tokens were airdropped to eligible investors.
The token also received high-profile listings on major exchanges including Binance. Initially, the buzz surrounding Notcoin pushed it to an all-time high of $0.037. Within 24 hours of listing, Notcoin reached the eighth-highest trading volume at over $1.4 billion.
The project gained significant attention due to the endorsement of Telegram founder Pavel Durov, who publicly praised Notcoin on his Telegram channel, highlighting the project’s rapid growth and transition from in-game currency to real money for users.
On May 17, Durov expressed his gratitude to the Notcoin community for its generous donation of more than 1 billion NOT tokens, worth about $6.8 million. In addition, Durov said that he would hold these tokens until their valuation grows to $680 million, or 100 times its current valuation.
However, the excitement quickly dissipated as NOT’s price began to plummet. Within a week, the token had lost more than 85% of its value and was trading well below its initial launch price.
This sharp drop can be attributed to investors quickly selling their airdropped tokens to secure profits rather than holding them for potential future gains. This massive sell-off caused a severe oversupply in the market, further depressing prices.
Cryptocurrency analyst “Crypto Patel” is pessimistic about Notcoin’s future price action.
Patel said: “Based on the chart analysis, we can see a small up move to $0.0060-0.0065 followed by the next leg down to $0.0040.
Notcoin (NOT) Price Analysis. Source: TradingView
The analysis reflects current market sentiment, with many investors remaining cautious about the token’s short-term prospects.
In response to price volatility, the Notcoin team outlined upcoming events, products, and offers designed to increase user engagement and token stability. These initiatives include expanding staking benefits and providing exclusive allocations of additional launches to gold and platinum tier users.
The team stressed that while they encourage users to stake their tokens, they do not intend to lock or force anyone to stay.
“You are free to unstake your Notcoin on-chain at any time and withdraw it. Yes, you will lose tier benefits and access to the pool. However, we don’t want to lock or force anyone to stay. Notcoin is a free choice,” the Notcoin team wrote.
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