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Why did the Notcoin price collapse?

Let's figure out why the price Notcoin (NOT) fell sharply after the recent hype and shortly after listing on exchanges.

Notcoin is a Web3 gaming project based on the TON network, which appeared in January of this year as a mini-application in Telegram. In just a few months, the number of Notcoin players exceeded 35 million people. Since last week, NOT has become available on many major exchanges. But now investors lured by the recent boom are facing big losses.

It all started so well

Notcoin debuted on the Toncoin network last week. As part of the launched airdrop, investors eligible to participate in the program received NOT tokens worth approximately $1 billion.

The listing of the token on major exchanges, including Binance, initially allowed the price to reach an all-time high of $0.037. Within 10 minutes after launch, the project’s capitalization exceeded $1 billion, and within 24 hours NOT became the eighth most traded cryptocurrency on the market.

The project attracted significant attention thanks to the support of Telegram founder Pavel Durov. He publicly praised Notcoin on his Telegram channel, noting the project's rapid growth and its transition from in-game currency to real money for users. In addition, he promised to hold the tokens until their value increases 100 times.

Notcoin is expected to fall further

However, this excitement quickly faded, and the price of NOT began to plummet. Within a week, the value of the token fell by more than 85%, falling well below the launch price.

Investors did not want to hold coins in anticipation of potential future profits. Instead, they quickly sold off their airdrop tokens to make a profit right away. This massive sale led to a significant oversupply on the market, which further reduced the price.

A cryptanalyst under the nickname Crypto Patel is pessimistic about the prospects of the coin.

“According to chart analysis, we may see a small pump in the direction of $0.0060-$0.0065 before the next move down towards $0.0040,” writes Crypto Patel.

He is not alone in this forecast. Many investors are also cautious about the token's short-term prospects.

In response to price volatility, Notcoin developers shared plans for further development of the project. They outlined upcoming campaigns, products and offers aimed at increasing user engagement and token stability. However, the team emphasized that while they encourage users to stake their tokens, they do not intend to lock up assets or force anyone to participate in the network.

“You can unlock your NOTs at any time and bring them online. Yes, you will lose your level benefits and access to pools. But we don't want to force anyone to stay. “Notcoin is a free choice,” the project team wrote.

Source: Cryptocurrency

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