Notcoin (NOT), a cryptocurrency backed by Telegram, has seen a dramatic value drop of over 85% in its first week of listing despite a successful airdrop campaign.
This cryptocurrency is part of a Telegram-based game with over 35 million users. Investors who were optimistic about its potential are now facing significant losses.
BeinCrypto reports that Notcoin launched on the Toncoin Network last week, distributing nearly $1 billion worth of NOT tokens to eligible investors.
The token achieved a high-profile listing on major exchanges like Binance. Initially, the bullish sentiment drove Notcoin to an all-time high of $0.037. Within 24 hours, it ranked among the top ten cryptocurrencies by trade volume, hitting $1.4 billion and securing the eighth spot.
The project’s reputation soared after Telegram founder Pavel Durov endorsed it. He highlighted its transformation from an in-game currency to real money. Durov received a donation of 1 billion NOT tokens, worth about $6.8 million. He plans to hold these tokens until their value increases 100-fold, potentially making them worth $680 million.
However, the excitement around Notcoin faded as its price plummeted in the first week. This sharp decline is due to investors selling their airdropped tokens quickly to secure profits, causing an oversupply and further driving down the price.
Some crypto analysts predict a more bearish outlook for Notcoin. Analyst “Crypto Patel” suggests the price could fall to $0.0040.
The recent price dip reflects the current market sentiment, with many investors cautious about Notcoin’s short-term prospects.
What to Know
Many Nigerians benefited from the Notcoin airdrop by actively participating in Telegram gaming, boosting their shares in the crypto.
In response to the significant price drop, the Notcoin team has outlined upcoming campaigns, products, and offers to increase user engagement and stabilise the token. These initiatives include extended staking benefits and exclusive allocations from other launches for Gold and Platinum level users.
