Notcoin’s Price Nosedives 85%: What Went Wrong?

NotCoin (NOT), the cryptocurrency that has been heavily endorsed by social media giant Telegram, has seen a significant drop in value. This happened within the first week of being listed.

The crypto is part of a Telegram-based game that has a user base of 35 million. Investors who bought the ad are now facing huge losses.

Crypto analyst expects further fall in Notcoin price.

Notcoin was launched on the Toncoin network last week. Nearly $1 billion worth of worthless tokens have been released to qualified investors.

The token has also secured high-profile listings on major exchanges, including Binance. Initially, the buzz around Notecoin saw it hit an all-time high of $0.037. Within 24 hours of the listing, Notcoin reached the eighth position with over $1.4 billion in trading volume.

The project received a lot of attention thanks to the support of Telegram founder Pavel Durov. Durov publicly praised Notcoin on his Telegram channel, highlighting the rapid growth of the project and its transition from in-game currency to real money for its users.

Read more: 5 Best Toncoin Wallets in 2024

On May 17, Durov expressed his gratitude to the Notcoin community for a generous donation of more than 1 billion tokens worth approximately $6.8 million. Furthermore, Durov said he will hold the tokens until their value rises to $680 million, or 100 times their current value.

However, this excitement quickly faded as the price of NOT began to decline. Within a week, the token's price dropped by more than 85%, below its initial price.

The sharp drop may be due to the rapid selling of tokens that have been depreciated rather than holding them for future gains. This large-scale sale led to an oversupply in the market, which drove the price down even further.

A crypto analyst has a pessimistic view on Notcoin's future price movements.

“As per chart analysis, we can see a small pump to $0.0060-$0.0065 before going down to $0.0040 in the next leg,” Patel said.

Read more: 11 Cryptos to Add to Your Portfolio Ahead of the Altcoin Season

This analysis reflects the current sentiment in the market where many investors are cautious about the token's short-term prospects.

In response to price volatility, the Notcoin team has outlined upcoming campaigns, products and offers aimed at increasing user engagement and token stability. These initiatives include extending benefits and offering special allocations to Gold and Platinum level users from other startups.

While the group encourages users to withdraw their tokens, it emphasizes that they do not intend to coerce or coerce anyone into holding them.

“You are free to withdraw your NotCoin at any time on-chain. Yes, you will lose your rank benefits and access to the pools. However, we do not want to lock or force anyone to stay. NotCoin is a free choice,” the NotCoin team wrote.