Key Takeaways:
- ConstitutionDAO’s native token PEOPLE crashed 57% since its Saturday peak.
- What’s behind the rally and the decline?
- The future purpose of the PEOPLE community is not yet clear, as ConstitutionDAO itself has left the building.
YEREVAN (CoinChapter.com) – ConstitutionDAO (Decentralized Autonomous Organization) has raised many eyebrows in the previous week due to its absurd rally and subsequent demise. First came a rollercoaster of available (or not so much available) refunds and price fluctuations. Then, the project’s governance token PEOPLE crashed 57.6% since peaking at $0.17 on Saturday.
As of publication, the token traded at $0.07 after losing 22% in the previous 24 hours. Moreover, as PEOPLE formed a Descending Triangle on the chart, ConstitutionDAO is primed for more losses.
The Descending Triangle is a bearish setup that predicts a continuation of the downtrend once PEOPLE exhausts the pattern. However, the bearish setup won’t likely be the primary moving force behind the dumping price. What’s pumped it in the first place might.
What pumped ConstitutionDAO?
ConstitutionDAO made headlines earlier in November. The creating team called for donations to obtain a rare copy of the US Constitution from Sotheby’s auction. The endeavor almost succeeded, as the community raised over $40 million in Ethereum in less than a week.
The crypto community is rich with fishy projects, but ConstitutionDAO cranked it up a notch and became the largest crowdfunding project in crypto history that amounted to nothing.
The participants might have thought they were getting governance rights over the historical object with their PEOPLE tokens. But lo and behold, the team was upfront from the get-go and never made promises.
[…]The tokens possess no rights, governance, or utility other than redeeming them for Ethereum from the smart contract held in Juicebox at a ratio of 1,000,000:1—the same ratio at which contributions were made to the initial crowdfund to buy the Constitution.
reads the website.
Also read: ConstitutionDAO floats a new token WTP giving governance rights to nothing.
Ironically, the team never won the auction, establishing PEOPLE’s governance over nothing. ConstitutionDAO closed- shop but offered the participants a refund. However, the token price continued to pump and put on over 4000%. The refund system was partially to thank (or blame) for the surge. The refunds reduced the number of PEOPLE tokens in circulation, boosting the price of individual PEOPLE tokens.
Also, after the crypto exchange OKEx listing on Nov 25, other exchanges, such as MEXC, Poloniex, and Gate.io, tuned in, creating additional hype.
However, in the wake of the recent decline, the participants have a Hobson’s choice to claim their Ethereum back at their own expense or take ownership of their funds in PEOPLE, which are useful for nothing yet. As the Ethereum network features notoriously high fees, there’s not much choice left.
What’s ahead for PEOPLE
Even though the idea of obtaining the rare US Constitution copy is in the gutter, the DAO’s community is still alive. The active Telegram chat burst with plans and occasional insults towards Ken Griffin, the CEO of Citadel, who won the Constitution bid.
ConstitutionDAO lost bidding war to some old money rich asshole isn’t the ending. It’s the beginning.
said one of the messeges.
Also read: Omicron crypto surges over 400% in one week thanks to new Covid19 variant of the same name.
However, the “much excitement over nothing” incentive could go a long way, as the year 2021 clearly proved with meme-coin rallies such as Shiba Inu, Floki, and the source of all the meme-crypto-culture: Dogecoin. The upcoming sessions will show if excitement alone is enough to sustain the PEOPLE token much longer, or it will follow down the bearish path.
