The New Jersey Crypto News
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Dogecoin
    • All Alt Coin
  • Learn
    • Learn

      How to Trade Futures Contracts on Changelly PRO

      11/14/2021

      Learn

      EtherLite (ETL) Cryptocurrency Price Prediction

      11/12/2021

      Learn

      How to Trade Bitcoin Futures

      11/12/2021

      Learn

      How to Start Trading Cryptocurrency

      10/21/2021

      Learn

      How to Create Your Own Cryptocurrency

      10/13/2021

  • Analysis
    • Analysis

      Bitcoin is Struggling, But It’s Too Early to Say Bulls Have Given Up

      12/29/2021

      Analysis

      Sushi Up 17% Amid DeFi 2.0 Rescue Rumors

      12/29/2021

      Analysis

      Ethereum Recovery Could Soon Fade If ETH Fails To Surpass $4k

      12/28/2021

      Analysis

      Charles Hoskinson Shares Cardano Plans for 2022

      12/28/2021

      Analysis

      Bitcoin Prints Bullish Pattern, Why BTC Could Surge To $50K

      12/27/2021

  • Blockchain
    • Blockchain

      Iran Bans Crypto Mining to Avert Major Blackouts in Winter Season

      12/29/2021

      Blockchain

      Italian Sports Car Maker Ferrari Inks Multi-Year Deal With Blockchain Firm Velas Network AG…

      12/29/2021

      Blockchain

      ProShares Files for New Metaverse ETF With U.S. SEC

      12/28/2021

      Blockchain

      Ozzy Osbourne Reveals Cryptobatz NFT Project Paying Tribute to His Iconic Bat Bite –…

      12/28/2021

      Blockchain

      Binance Trading Platform Licenses in Bahrain, Canada

      12/28/2021

  • Market Cap
Analysis

Was the Dfinity Team Responsible for ICP’s 95% Crash?

by Miki 07/04/2021
by Miki 07/04/2021 0 comment

Key Takeaways

  • Dfinity’s native token ICP dropped 95% from its highs in the space of a few weeks.
  • Independent research from Arkham reveals that the Dfinity Foundation may have dumped tokens on retail while blocking early investors from selling.
  • The founders have denied the allegations and blamed market euphoria and a general correction in crypto markets for the price action.

Since its launch, a 95% crash in ICP’s token price has raised suspicions that Dfinity Foundation carried out crypto’s biggest ever rug pull. Although the team has denied all allegations, it has lost its luster as one of the most promising decentralized ecosystems. 

Loopholes in Dfinity Foundation’s Plans

After Dfinity’s ICP token tanked 95%, some signs suggest that the team carried out a rug pull.

Over the course of 50 days, ICP’s price dropped from $630 to a low of $28.30 last Friday. 

Dfinity’s token launched on May 7 and saw subsequent listings on leading exchanges like Binance and Coinbase, helping it to surge to $630 within days. However, the drop came just as quickly, with the token recording negative gains almost every day since.

Like many previous token dumps, Dfinity’s token distribution process had raised several worrying signals that dented investor confidence. Arkham recently published a report on the Internet Computer token, tracing the flow of tokens from the foundation to exchanges without any public correspondence of ICP distribution from the team. The report noted: 

“Our analysis has led us to believe that possible insiders connected to Dfinity have been dumping billions of dollars of ICP on exchanges at the expense of small early supporters and retail investors.” 

What stood out from the beginning in Dfinity’s complex design and tokenomics was the different vesting periods for early investors and the developing team. 

The early seed investment round in 2017 was open to the public for $0.03 per ICP; the team had raised $3.9 million from 370 investors. These investors were allotted a quarter of the supply. However, that came with a 12-month vesting period after distribution in May. 

There is a 12-month vesting schedule for presale tokens (which make up 4.75% of all ICP tokens). 1/12 of these tokens are unlocked each month, over 12 months, starting from the token distribution date. There hasn’t been any announcement of a vesting schedule for airdrop tokens.

— DFINITY Explorer ∞ (@dfinityexplorer) February 23, 2021

Many of the project’s investors began cashing in gains of between 100x and 10,000x from investments they had made before 2018. 

Moreover, up to 50% of the supply allocated to the Dfinity Foundation, its advisors, team members, and the Internet Computer Association was not subject to a similar vesting schedule. 

According to research from Arkham, Dfnitiy—which holds 25% supply—transferred 18 million ICP tokens worth $3.6 billion to exchanges from its treasury in May and June. These transactions involve direct transfers to exchanges worth $2 billion and the rest was via alleged insider trading. 

Dominic Williams, the founder of Dfinity, confirmed in a tweet that the Dfinity Foundation’s tokens were not vested and were instead earmarked to lock for staking on the network. Williams has also denied allegations that the founders dumped tokens and carried out a rug pull. 

Foundation didn’t vest itself but plans on putting most of its ICP into neurons. It is doing this carefully to make sure foundation+team members don’t control the network (you wouldn’t believe it based upon what you hear, but in actual fact, we care a lot about decentralization!)

— Dominic Williams ∞ (@dominic_w) May 27, 2021

Nevertheless, the price action raises significant suspicions around a dominant force benefitting from the selloff, particularly after the token reached a top three position in cryptocurrencies by market capitalization. 

The crypto community had high hopes for Dfinity’s “Internet Computer” vision, which promised a full-stacked decentralized ecosystem with an all-star developer team. Naturally, many market participants had invested and were eager to get on the ICP bandwagon. 

Whether retail or a large whale was responsible for the dump, the coveted team has lost much of its credibility in the last few months. ICP is up 85% from lows of $28.30, last trading at $50.

Ankr's logo

This news was brought to you by ANKR, our preferred DeFi Partner.





Source link

Views: 1
CrashDfinityICPsResponsibleTeam
Share
0
FacebookTwitterPinterestEmail
previous post
Court Denies SEC Motion to Access Ripple Labs Legal Records on XRP
next post
XRP Community Accused Of Sharing False Information About SEC’s Top-Ranking Officials On Social Media ⋆ TCNW

Related Posts

Bitcoin is Struggling, But It’s Too Early to...

12/29/2021

Sushi Up 17% Amid DeFi 2.0 Rescue Rumors

12/29/2021

Ethereum Recovery Could Soon Fade If ETH Fails...

12/28/2021

Charles Hoskinson Shares Cardano Plans for 2022

12/28/2021

Bitcoin Prints Bullish Pattern, Why BTC Could Surge...

12/27/2021

Ethereum Breaks Key Hurdle, Why There Could Be...

12/26/2021

Could Bitcoin Benefit From A Santa Claus Rally?

12/25/2021

$8.2M Lost as Visor Finance Suffers Latest DeFi...

12/25/2021

Bitcoin Gains Momentum, Why Rally Isn’t Over Yet

12/24/2021

2021 in Review: the Top 10 Crypto Moments...

12/24/2021

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

For security, use of Google's reCAPTCHA service is required which is subject to the Google Privacy Policy and Terms of Use.

I agree to these terms.

Recent Posts

  • Are Solana’s bulls really strong enough to halt further decline

    12/29/2021
  • Elon Musk thinks this individual could be the potential Bitcoin (BTC) creator Satoshi

    12/29/2021
  • Iran Bans Crypto Mining to Avert Major Blackouts in Winter Season

    12/29/2021
  • Bitcoin is Struggling, But It’s Too Early to Say Bulls Have Given Up

    12/29/2021
  • Sushi Up 17% Amid DeFi 2.0 Rescue Rumors

    12/29/2021

Categories

  • All Alt Coin (2,280)
  • Analysis (312)
  • Bitcoin (1,302)
  • Blockchain (1,068)
  • Dogecoin (700)
  • Ethereum (304)
  • Learn (139)
  • Ripple (149)

About Us

About Us

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Cryptocurrencies, blockchain, Market, and more.

Featured Posts

  • Dogecoin (DOGE) Transaction Fee Reduction Proposal Gets Approval

  • Digital assets: the fun of non-fungible tokens

  • Industry Concerns New Policy Implementation after Google Lifting the Ban on Crypto Advertisements

Recent Posts

  • Are Solana’s bulls really strong enough to halt further decline

  • Elon Musk thinks this individual could be the potential Bitcoin (BTC) creator Satoshi

  • Iran Bans Crypto Mining to Avert Major Blackouts in Winter Season

Categories

  • All Alt Coin (2,280)
  • Analysis (312)
  • Bitcoin (1,302)
  • Blockchain (1,068)
  • Dogecoin (700)
  • Ethereum (304)
  • Learn (139)
  • Ripple (149)
  • Facebook
  • Instagram
  • Linkedin
  • Contact
  • Privacy Policy
  • Terms & Conditions

@2021 -thecryptonewsweb.com - All Right Reserved.

The New Jersey Crypto News
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Dogecoin
    • All Alt Coin
  • Learn
    • Learn

      How to Trade Futures Contracts on Changelly PRO

      11/14/2021

      Learn

      EtherLite (ETL) Cryptocurrency Price Prediction

      11/12/2021

      Learn

      How to Trade Bitcoin Futures

      11/12/2021

      Learn

      How to Start Trading Cryptocurrency

      10/21/2021

      Learn

      How to Create Your Own Cryptocurrency

      10/13/2021

  • Analysis
    • Analysis

      Bitcoin is Struggling, But It’s Too Early to Say Bulls Have Given Up

      12/29/2021

      Analysis

      Sushi Up 17% Amid DeFi 2.0 Rescue Rumors

      12/29/2021

      Analysis

      Ethereum Recovery Could Soon Fade If ETH Fails To Surpass $4k

      12/28/2021

      Analysis

      Charles Hoskinson Shares Cardano Plans for 2022

      12/28/2021

      Analysis

      Bitcoin Prints Bullish Pattern, Why BTC Could Surge To $50K

      12/27/2021

  • Blockchain
    • Blockchain

      Iran Bans Crypto Mining to Avert Major Blackouts in Winter Season

      12/29/2021

      Blockchain

      Italian Sports Car Maker Ferrari Inks Multi-Year Deal With Blockchain Firm Velas Network AG…

      12/29/2021

      Blockchain

      ProShares Files for New Metaverse ETF With U.S. SEC

      12/28/2021

      Blockchain

      Ozzy Osbourne Reveals Cryptobatz NFT Project Paying Tribute to His Iconic Bat Bite –…

      12/28/2021

      Blockchain

      Binance Trading Platform Licenses in Bahrain, Canada

      12/28/2021

  • Market Cap
  • RelevantRelevant(REL)$0.825.35%
  • Heart NumberHeart Number(HTN)$0.000553-30.47%
  • TadpoleTadpole(TAD)$7.32-1.76%
  • SEENSEEN(SEEN)$2.05-2.27%
  • EvedoEvedo(EVED)$0.082301-0.80%
  • MarginswapMarginswap(MFI)$0.184214-2.17%
  • SakeTokenSakeToken(SAKE)$0.0127234.37%
  • WTF TokenWTF Token(WTF)$0.0113500.16%
  • BNSD FinanceBNSD Finance(BNSD)$0.005460-5.83%
  • RobotinaRobotina(ROX)$0.00266138.50%
  • CageCage(C4G3)$0.005010-3.67%
  • YAM v2YAM v2(YAMV2)$4.70-1.41%
  • PolkaBridgePolkaBridge(PBR)$0.439876-7.02%
  • DSLA ProtocolDSLA Protocol(DSLA)$0.003681-6.85%
  • lympoLympo(LYM)$0.004392-4.43%
  • Falcon ProjectFalcon Project(FNT)$0.000366-2.23%
  • DYORDYOR(DYOR)$0.00002020.53%
  • TICOEX TokenTICOEX Token(TICO)$0.0013640.52%
  • MMS Cash TokenMMS Cash Token(MCASH)$1.000.00%
  • bitcoinBitcoin(BTC)$29,188.00-3.91%
  • ethereumEthereum(ETH)$1,962.67-5.74%
  • tetherTether(USDT)$1.00-0.11%
  • usd-coinUSD Coin(USDC)$1.000.02%
  • binancecoinBNB(BNB)$294.65-3.21%
  • rippleXRP(XRP)$0.413988-5.15%
  • Binance USDBinance USD(BUSD)$1.00-0.03%
  • cardanoCardano(ADA)$0.53-8.47%
  • SolanaSolana(SOL)$51.13-9.79%
  • dogecoinDogecoin(DOGE)$0.085811-5.26%
  • polkadotPolkadot(DOT)$9.88-10.70%
  • AvalancheAvalanche(AVAX)$30.73-10.90%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$29,217.00-3.93%
  • Lido Staked EtherLido Staked Ether(STETH)$1,930.99-5.69%
  • tronTRON(TRX)$0.071762-0.94%
  • VectoriumVectorium(VECT)$425.81-3.49%
  • Shiba InuShiba Inu(SHIB)$0.000012-5.54%
  • daiDai(DAI)$1.00-0.25%
  • Power CashPower Cash(PRCH)$0.017570881.24%
  • AlexAlex(ALEX)$0.068435-0.04%
  • litecoinLitecoin(LTC)$67.85-6.44%
  • CronosCronos(CRO)$0.188166-6.27%
  • LADZLADZ(LADZ)$0.0686894.36%
  • leo-tokenLEO Token(LEO)$4.93-0.40%
  • matic-networkPolygon(MATIC)$0.65-10.16%
  • NEAR ProtocolNEAR Protocol(NEAR)$6.11-6.70%
  • FTX TokenFTX Token(FTT)$30.18-5.58%
  • HederaHedera(HBAR)$0.389473-3.44%
  • bitcoin-cashBitcoin Cash(BCH)$192.61-6.47%
  • RareRare(RARE)$0.0461220.00%
  • chainlinkChainlink(LINK)$7.01-8.58%