EGC token plunged 30% overnight amid EverGrow Coin team wallet FUD

Key Takeaways:

• EverGrow Coin price dipped on Nov 29, after a reward wallet confusion and recovered in the Tuesday session.
• The project claims that their Buy-Back and Burn mechanism can take the EGC coin to high-ranking positions on the crypto market.

YEREVAN (CoinChapter.com) – EverGrow Coin (EGC) price dropped 30% on Nov 29, only to recover the next day, when the hype over the team wallet settled. The community’s FUD reaction came in the wake of a wallet confusion, which Sam Kelly, the Chairman of the board, tried to clarify in a tweet video.

A bit of EverGrow Coin background

In hindsight, EverGrow awards EGC holders with Binance-pegged Stablecoin – BUSD.

Earn automatic Binance pegged BUSD rewards by holding your $EverGrow Coin – 8% of every buy and sell transaction is automatically redistributed to all token holders.

reads the whitepaper.

During the AMA on Nov 28, Mr. Kelly announced that the EverGrow team vouched to receive their salary through BUSD as well. In other words, the team is committed to receiving rewards (reflections) like any other member of the community. They created the ‘team wallet, which will then transfer the BUSD to 4 additional wallets (for each team member), the addresses to which were provided in a Twitter thread below.

Additionally, the team specified that they would NOT sell any of their EGC for profit. The better the project does in the future, the more reflections the team gets, which Mr. Kelly felt was a fair game, to “align [the team] with the community.”

What happened?

However, the attempt to provide additional transparency backfired. As the payment “was taxed like everybody else,” the transfers generated lots of EGC coins going into the rewards wallet. Once the rewards wallet was “full enough”, it automatically used the EGC coins to buy BUSD for community reward distribution. The public misconstrued the move as an attempt from the team to take profits and scam the investors.

To make matters worse, according to the executive, “right at the end of the process,” a whale (address with a large share of coins) sold $200,000-worth of EGC. The whale dump skewed the demand/supply equilibrium and dropped the price sharply. The decline initiated a panic sell-off, which resulted in another whale dump.

Also read: EverGrowCoin prices pop higher on BitMart and ZT exchanges’ EGC listing.

Mr. Kelly assured the EverGrow community that the team wallets are “exactly as they were” and urged his followers not to panic. He emphasized the transparency of the project and the team as well.

As mentioned, the EGC price recovered overnight and stood at $0.0000007704.

EverGrow Coin Buy Back and Burn

During the mentioned AMA session, the team discussed various aspects of the project, including the Buy-Back and Burn mechanism. Mr. Kelly singled out the mechanism as unique across the crypto market and explained how it works.

According to the executive, the mechanism sends the project-generated revenue back to the community. The team uses the revenue to Buy the EverGrow coin, which subsequently increases the price, and “creates rewards.” Afterward, the EGC is sent into the Burn wallet and destroyed. The burning mechanism subsequently causes a supply squeeze, which makes EGC a more scarce resource.

Also read: New heights ahead for EGC Coin, after EverGrow’s tax-free foray into CEXs, says chairman.

“We’re the only people doing that with our revenue,” concluded Mr. Kelly, pointing out that the deflationary mechanism could elevate EverGrow to dominant positions on the market.

As of publication, EGC ranked #2854 with a market cap of $379,637,108. The token lost 77% since peaking at its all-time high of $0.0000033 on Nov 1.