Internet Computers (ICP) down 95% in less than two months after launch, why?
As Bitcoin and most altcoins are slowly bouncing back from the recent market sell-off, the price of a cryptocurrency that was once an industry star continues to fall and is now valued at a fraction of the price it was in May.
Currently, Internet Computer (ICP) prices are currently trading at $ 35, down 1.5% over 24 hours. It used to be as high as $ 630 when it was listed on the Coinbase Pro exchange on May 10.
ICP price chart | Source: Tradingview
By comparison, Bitcoin is up 7% in the past 24 hours and is trading at $ 35,000. Most of the other altcoins also rallied.
The crypto room is recovering | Source: Coinmarketcap
From the start, the ICP price fluctuated wildly as several exchanges listed it, including Coinbase, Binance, Huobi, and OKEx. On May 10 alone, the ICP rose from $ 630 to $ 250 before slowly bouncing back to $ 400. The drop to $ 35 was too high for many investors.
Why is the ICP price falling?
Denis Vinokurov, Head of Research at Synergia Capital, said:
“The fact that the ICP was launched in such an active market may have shifted the initial value into too high an expectation range.”
Rick Delaney, Senior Analyst at OKEx Insights added:
“With falling prices across the industry, the most recently hyped projects are among the hardest hit projects. In the case of ICP, it seems that the easier and faster the pumping, the more serious the landfill is. “
Dfinity Foundation, the project behind Internet Computers to explain, ICP makes every aspect of DeFi applications “immutable”. You have raised over $ 120 million with investors like Andreessen Horowitz (a16z), Polychain Capital, Scalar Capital, CoinFund, Multicoin Capital and Greycroft Partners.
The Dfinity Foundation’s Layer 1 protocol aims to provide a decentralized public network that will become an “extension of the Internet”. They have been working on the project since 2016.
Copy To update The latest edition of the Dfinity Foundation was published on June 21st and introduces a range of tools to increase the security of ICPs.
“The technology is great on paper, but to a greater extent it remains unproven. In addition, there is hardly any evidence that the team is actively building computers on the Internet. “
You can view details about ICP prices.
According to Coindesk