DOGS Listing Went Live. Why Is the Price Falling, and What Is Happening to the TON Network?
On August 26, DOGS was listed on major exchanges. Things did not go without drama. The app is making grand plans after the token launch, but the price keeps falling.
Did DOGS repeat the success of Notcoin?
DOGS became the second major listing on TON after Notcoin, debuting on International Dog Day at $0.0012 and a capitalization of $700 million. Although DOGS failed to achieve Notcoin's success in some metrics, the project caused a stir.
DOGS utilizes the concept of VK's unofficial mascot, a dog named Spotty. Pavel Durov once drew this logo for charity. The Telegram mini-app quickly attracted the attention of a multi-million audience because it used an approach to coin awarding that was not quite standard for mini-apps. DOGS calculated the age of the user's Telegram account and immediately awarded with a certain number of coins.
Since then, users have been waiting for the developers to launch the token and list it.
And not only success...
DOGS was originally scheduled to be listed on August 20, but due to the high influx of new users, it was decided to postpone it. On August 26, trading took place on centralized exchanges such as Binance, MEXC, OKX, etc., as well as decentralized exchanges such as STON.fi and DeDust.
Just as Bybit had a nasty incident with the listing of Notcoin, there was a scandal with the listing of DOGS as well. The MEXC exchange unexpectedly started trading DOGS two hours before its official launch at a price of $0.015. Users reported that the exchange deliberately did not credit the coins deposited on the balance.
Another scandal was related to the successful trading of a trader who managed to make a profit of 400% at the time of listing. Some users congratulated him, noting his observation, while others found his smooth actions strange. They accused him of insider trading, wondering how he could have known about the listing on certain exchanges 2 hours before the coin's launch. The listing of DOGS on centralized exchanges was announced on the day of the coin's release.
TON is not doing well
In addition to the MEXC situation, users were not happy with the performance of the TON network. As in the case of Notcoin it failed to cope with the influx of users. TON developers later wrote that the DOGS listing was a real stress test for the network, as they received 150,000 user requests every minute. And although they warned in their post that the network would be slow for a while, 24 hours later the load on the TON network remains very high. OTC wallets such as Wallet and some exchanges warned their users about the outage.
At the same time, DOGS developers are checking accounts for fraud and manipulation for profitable airdrop and blocking addresses and freezing coins that have already arrived on exchanges and wallets.
This is not the first disruption in the work of TON services at the start of coin trading. A similar situation happened to Notcoin. Wallet worked with interruptions, and then its developers had to charge additional NOTs as compensation. At that time, it was explained by the first experience of listing memecoin mini-apps.
The listing of DOGS led to a failure not only in TON services, but also on other exchanges amid the influx of a huge number of users. As a result, coin prices differed greatly on each platform, leading to user dissatisfaction.
Expected turbulence or Durov's arrest?
The launch of DOGS coincided with the arrest of Telegram founder Pavel Durov. The DOGS community came out in support of its mastermind, joining the list of billionaires and politicians who condemned the actions of the French authorities.
The price of the coin managed to reach a high of $0.0017 a few hours after the listing. However, the next day, the coin plummeted by 30% and its capitalization dropped to $650 million. Such behavior of memecoin after its launch is quite normal: many investors are eager to get rid of the coins received as a result of airdrop. DOGS continues to be in the red zone due to the ongoing strain on the network and amid the news of Durov's arrest, which shocked the entire community.
DOGS plans
DOGS is not going to stay on track and plans to stick to Durov's idea of launching tokenized stickers in Telegram. The mini-app is going to provide an opportunity to trade NFT stickers on marketplaces. The only NFT marketplace for TON right now is Getgems. It's unclear if it will trade NFT stickers created by DOGS, or if it will happen at all.
In the meantime, the DOGS price has room to rise once the selling pressure ends.
