Employees of the FOIN project published a statement explaining the main reasons for the crazy drop in the value of their token by 99.5%: from $2980 to $4.7.
We prepared a big announcement answering the most important questions of the last days:
— explanation of the current market situation;
— future plans;
— directions of development for FOIN, FoPay, FOIN Foundation, and AliExchange.
— FOIN (@foinio1) January 10, 2020
The FOIN project and the cryptocurrency were created in the summer of 2018, and its rate has been constantly growing for 18 months: from $400 to $2640. In December 2019, the project partner – the cryptocurrency payment service FoPay announced the acquisition of a small cryptocurrency exchange AliExchange for 1 million FOIN. At the time of the transaction, it amounted to $2.6 billion. Due to this, the withdrawal of FOIN tokens was suspended until the end of the year.
On January 2, 2020, after the restriction was lifted, the token rate fell from $3,110 to $11 in just a few hours, now the coin costs less than five US dollars.
The coin is traded on two centralized exchanges working under the jurisdiction of Estonia: P2PB2B and Hotbit. By the way, 99% of the total trade turnover falls on the second platform.
The team claims that the catastrophic rate drop was caused by the fact that a huge number of new investors wanted to get rid of the coin as soon as possible, which made the snowball effect.
“As soon as the coin comes on the exchanges, the team that launched it no longer has control over prices, and it can’t compensate for any losses no matter how much it wants to help,” the statement said.
Representatives of the FOINS project said that they would take actions to restore liquidity and the value of the token price soon: new partnership agreements, carrying airdrops, listing on other exchange, etc.
To keep up with the latest news in the world of cryptocurrencies and the blockchain industry, check out updates on TheCoinShark.