Nigeria (CoinChapter.com) — Dfinity’s coin ICP has posted a massive 45% rebound. This was after the coin took a 95% plunge over a month ago.
The coin earlier traded at $680 at the point of listing on Coinbase but lost over 95% of its value when the team reportedly sold off 20 million of its ICP reserves. The price quickly crashed to $255. And then made a brief recovery to $490. At which point it continued its crash, albeit more slowly this time around.
The coin was listed on Coinbase on May 10 to much anticipation by investors. This was a factor in the high listing price initially. But with such a large amount sold off in such a short time, it tanked the coin’s price.
Rise And Subsequent Decline
Over the next two months, ICP price continued to decline. This seemed to be in line with price crashes across the crypto market. But even when other coins started to recover, the price of ICP stayed down. In fact, the coin kept losing money while other coins recovered.
Dfinity had raised $120 million for the ICP project. Its investors included PolyChain Capita, CoinFund, and a host of others. Within a week of its release, the coin already had a market cap of $30 billion. A number that has since fallen to $5.8 billion.
Speculations are that the high valuation was due to the coin being launched in a bull market. With prices so high, a new coin like ICP might have commanded such a large pricing. But once the money started leaving the market, the coin started to suffer. This is partly being because the coin had not had time to establish itself. But the massive sell-off was no doubt the trigger for the massive price decrease.
Dfinity has been involved in some scandals over the months. First, the President of Dfinity had allegedly offered $100 to people to dox a Redditor. The reason being that the Redditor was spreading FUD.
The Redditor alleged that the people in the project were not real. Explaining in a deleted post that the profiles were fake. Dominic Williams responded that the allegations were fake. And he assured everyone that all team members were real.
There have been calls out from users on Reddit that the Dfinity team was dumping tokens. A Reddit post alleges that the Dfinity team had sold off 90 million tokens.
From the outside, it looks like the team is perpetuating a rug pull. Investors have been calling for the team to disprove these claims. But so far, there has been no word regarding the allegations from the team.