Notcoin (NOT), a cryptocurrency highly endorsed by the messaging platform Telegram, has experienced a dramatic 85% loss in value within the first week of its listing, despite concluding a highly successful airdrop campaign.
The crypto, integral to a Telegram-based game with a robust user base of over 35 million, has left early investors facing significant losses.
According to BeinCrypto, Notcoin debuted on the Toncoin Network last week, airdropping nearly $1 billion worth of NOT tokens to eligible investors.
The token secured high-profile listings on major exchanges, including Binance. Initially, the bullish sentiment around Notcoin propelled it to an all-time high of $0.037.
Within 24 hours of its listing, Notcoin surged into the top ten cryptocurrencies by trade volume, surpassing $1.4 billion and clinching the number eight spot on the list.
The Notcoin project gained considerable traction after receiving a strong endorsement from Telegram founder Pavel Durov.
He praised its transformation from an in-game currency to real money for its users. Durov also expressed gratitude for a donation of 1 billion NOT tokens, worth approximately $6.8 million, from the Notcoin community.
He stated his intention to hold the tokens until their value increased 100-fold, which would translate the donation to $680 million.
Despite these optimistic projections, Notcoin’s value plummeted within the first week of its listing. The sharp decline is attributed to investors rapidly selling off their airdropped tokens to secure immediate profits rather than holding onto them for potential future gains.
This massive sell-off led to a significant oversupply in the market, further driving down the price.
Some crypto analysts predict an even more bearish outlook for Notcoin following recent trends. Notably, Crypto Patel, a prominent analyst, believes the price could drop as low as $0.0040.
The recent price dip of Notcoin and surrounding market dynamics reflect current sentiment, with many investors remaining cautious about the token’s short-term prospects.
Despite the downturn, many Nigerians benefited from the Notcoin airdrop campaign by actively participating in the Telegram gaming activity, thereby increasing their shares in the crypto.
In response to the heavy price dip, the Notcoin team has outlined upcoming campaigns, products, and offers aimed at boosting user engagement and token stability.
These initiatives include extending staking benefits and providing access to exclusive allocations from other launches for Gold and Platinum level users.
