Dfinity is accused of fraud as its ICP has dropped 95% since launch

Internet Computer (ICP) made headlines after posting a paper-based return of 80.69% from its $ 28.31 low on June 27.

On June 28, the ICP / USD pair closed at $ 51.24, its highest level in over a week.

ICP / USD daily chart | Source: TradingView

Along with the broader market retreat, Internet Computers followed, with a steep decline of more than 95% since ICP was launched on major crypto exchanges, including Binance and Coinbase, over a month ago. As a result, the cryptocurrency’s rally over the past 48 hours has failed to offset its prevailing downtrend.

Dfinity, tthe organization behind the fraudulent ICP

Some community members claim that Dfinity, the Zurich-based nonprofit that supports the Internet Computer Project, has sold nearly $ 6 billion worth of ICPs since the token was listed. Redditor @trapsandwich, who claims to be an early investor, wrote a detailed analysis on r / Dfinity over a month ago, noting that wallets connected to the Internet Computer team repeatedly send their tokens to other exchanges.

Reddit presenter Dfinity has Remove post.

@trapsandwich also in a. specified another post on Reddit that Dfinity blocked its first-time investors’ ICP tokens for an additional month after listing the token on crypto exchanges. At the same time, however, the company does not lock its own stocks, around 111 million ICP.

Redditor @trapsandwich Accuses Internet Computer Group of Spending 20 Million Tokens | Source: Reddit

Another Redditor @ Beneficial-Source147 claimed that the amount of ICP tokens dumped by Dfinity was 90 million ICP. However, other Redditors have defended themselves, saying that most ICP transfers are for developer-specific funding, not for sale.

A snapshot from IC.ROCCKS shows how Dfinity’s Internet computer moves 90 million ICP tokens across multiple wallets.

Overall, the allegations suggest that Internet Computer deliberately prevented its investors from selling ICP. In the meantime, tokens continue to decline amid a correction in the entire crypto market.

As a newly listed project, Internet Computer proved to be stronger than its leading blockchain competitors, including Ether (ETH), Cardano. So seems to be overpriced.

In particular, traders rated the ICP differently on several crypto exchanges at the time of its introduction. For example, the ICP / USD pair on Binance hit a high of $ 3,126 on day one. Meanwhile, the pair’s intraday high is at $ 630 on Coinbase.

ICP / USD daily chart | Source: TradingView

ICP’s circulating delivery on May 11th is approximately 134.8 million on a total capitalization of 469.2 million. As a result, Internet Computer’s market capitalization on Binance is more than $ 426 billion. Back then, Dfinity’s blockchain project was the third most valuable after Bitcoin and Ethereum. Ethereum’s market capitalization reached

Outlook from ICP Triển

Internet Computer is a project that tries its luck in the ongoing battle to scale the blockchain. But instead of relying on small miners and validators to keep a public ledger, Dfinity’s goal is to build large data centers and high-end nodes that can provide more bandwidth to the project.

“If ICP succeeds in replacing traditional IT, we don’t need antivirus and centralized DNS services,” said Mira Christanto, researcher at the crypto analysis platform Messari. , Firewalls, database systems, cloud services and VPNs ”.

ICP made a notable debut after listing on major crypto exchanges. The token is also backed by a number of prominent investors, including Andreessen Horowitz’s a16z venture fund and Polychain Capital, a New York-based crypto-focused hedge fund operated by Olaf Carlson-Wee, who previously headed risk management at Coinbase.

Unrealistic pricing and excessive liquidity since launch may have hurt ICPs. However, according to the Relative Strength Index, the token has been oversold since its inception. This could be a buy signal for some traders.

SN_Nour

According to Cointelegraph

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