Notcoin (NOT), a play-to-earn clicker game on Telegram, saw its price drop by 55% after being listed on major crypto exchanges.
As of now, NOT is trading at $0.006414, with a 24-hour trading volume of $1.35 billion. The token’s market cap has decreased to $661 million, according to CoinMarketCap.
Notcoin is a web3 gaming project that launched on January 1 within The Open Network (TON) ecosystem. It operates as a mini-application within Telegram, allowing users to earn coins by simply tapping their phone screens. Users can increase their earnings through various activities.
The game’s mining phase ended on April 1. The Notcoin team initially planned to launch the NOT token on April 20 to coincide with the Bitcoin halving, but the launch was delayed twice to ensure a smooth rollout.
NOT gained significant attention recently after announcements from crypto exchanges such as Binance, OKX, KuCoin, and Bybit that they would list the token.
After being distributed across several exchanges, Notcoin began trading at a fully diluted valuation (FDV) of over $1 billion just hours after its airdrop debut on May 16.
The token generated $294 million in trading volume within its first hour. Despite reportedly bringing 35 million users into its ecosystem, the token’s price began to drop sharply as airdrop recipients sold off their tokens, resulting in a 55% decline.
NOT’s decline follows a common pattern seen with many cryptocurrency airdrops, which often experience significant sell-offs after launch. For instance, on October 20, Layer-1 blockchain Aptos saw its native coin, APT, fall rapidly after a 20 million coin airdrop. Similarly, SocialFi project friend.tech saw a 98% price drop for its FRIEND token shortly after its May 3 debut.
Many had hoped that NOT would lead to a resurgence in the gaming token sector, but it has not met those expectations. In 2024, gaming tokens have generally underperformed compared to other trending categories like AI and meme tokens.
Summary Review: The sharp decline of Notcoin (NOT) following its exchange launch underscores the volatility and risks associated with cryptocurrency airdrops. Despite initial excitement and significant trading volume, the token’s 55% drop highlights the challenges faced by new gaming tokens in gaining and maintaining value. This trend mirrors previous airdrop experiences where tokens often see massive sell-offs post-launch. While there were high hopes for NOT to rejuvenate interest in gaming tokens, the sector continues to lag behind more popular categories like AI and meme tokens in 2024. The situation with NOT emphasizes the need for cautious optimism and robust strategies when engaging with new crypto projects.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
