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Notcoin Price: What Comes Next?
05/22/2024

Notcoin Price: What Comes Next?

05/22/2024
4,7

Last week on May 16, the Notcoin token made its debut on leading cryptocurrency exchanges. Within the first 24 hours, it climbed to the eighth position in terms of market trading volume. However, the initial excitement quickly subsided, leading to a sharp decline in the token's price. Let's delve into the reasons why this happened and explore potential future developments for Notcoin's price.

Last week on May 16, Notcoin was launched on the Toncoin blockchain and was listed on major cryptocurrency platforms including Binance, OKX, Bybit, among others The Notcoin team reported that within the first 36 hours post-listing, over 5 million users had claimed NOT tokens.

The trading of Notcoin started on exchanges such as Binance, OKX, Bybit, Kucoin, Gate, and Bitget with an introductory price of $0.012. Shortly after the launch, Notcoin’s market capitalization exceeded $1 billion. During the initial 24 hours, it ranked eighth in trading volume across the market. However, the initial buzz quickly faded, and the token's price started to plummet.

A significant number of investors, who had received tokens during the airdrop, chose to cash in immediately, leading to a rapid sell-off and further decline in prices.

It is important to note that Notcoin might have been the first cryptocurrency experience for many users, making it understandable that they were quick to convert their virtual coins into tangible cash. This rush increased the supply in the market, exacerbating the drop in value.

By the end of the week, the token's value had fallen by more than 85%, significantly below its starting price. By May 21nd, the token's price had dropped to $0.00551, which is 60% below its initial price, with the market capitalization falling to $565,377,394.

Source & Copyright: TradingView

Yan Smelnitsky, the leading crypto analyst at Cryptonica, has observed that even a preliminary analysis prior to trading indicated the 0.005 level would be critical if TON targeted the promotion of NOT among top meme coins. " At the start of trading, the coin showed strong movement at the upper limits of the price range. However, the subsequent decline, amounting to roughly twice the decrease from the initial price, clearly signals specific market trends. This is a common pattern for many projects on the still nascent TON platform, which isn't yet accustomed to managing assets beyond traditional fiat," Smelnitsky explains.
    
Furthermore, some users faced technical issues, including delays in the crediting of tokens and transfers to the Telegram Wallet on platforms such as Binance and Bybit. In response, the Notcoin team has offered compensation totaling $10 million to affected users, while Bybit has set aside $26 million for its customers.



What's happening with Notcoin? 

In efforts to stabilize the market and boost user engagement, Notcoin team has unveiled new products and campaigns. They have stressed that staking of tokens remains optional and assets will remain unblocked. Gold and Platinum level participants will gain access to token distributions for upcoming projects, potentially bringing additional benefits.

However, Smelnitsky believes that TON and the exchanges will work to mitigate sales barriers and encourage users to retain their tokens rather than liquidate them immediately.

"We are already seeing staking of NOT tokens and staking rewards in NOT for TON. TON is actively integrating NOT into its projects, providing some utility to the token to enhance its attractiveness," Smelnitsky comments.

In addition, new utilitarian applications for the NOT token have been revealed:

  • The Battle app now includes a voting feature utilizing NOT.
  • The Catizen app has enabled in-game purchases with NOT.

The most significant update — Tonkeeper has announced a new feature called "Battery," which allows for paying gas for TON transactions. This function can now be topped up using NOT, making its use even more practical. "Given that TON transactions occur daily, using NOT for payments is very convenient. If TON integrates this change, NOT will acquire a significantly useful role, though we initially thought GRAM would become TON's gas token," Smelnitsky adds.

Summing Up: What Will Happen to Notcoin's Price?

In conclusion, the market is experiencing a typical dynamic where inherent conflicts of interest prevent effective resolution, much like trying to fight fire with fire. Prices are anticipated to continue their downward trajectory over the next one to two weeks, potentially leading to significant red candles, especially if the cryptocurrency pools devalue.

The strategy of pragmatic investors remains consistent: they do not intend to actively acquire this asset unless its price falls to critically low levels. However, they are open to revising this approach if the coin begins to serve as a significant asset in liquidity boosts. This scenario could offer additional opportunities for generating revenue from "gas" token operations.
 

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