Internet Computing (ICP) was spotted among day traders after rising 41.69% on Sunday.
The ICP / USD exchange rate closed the session at $ 42.98 after a correction lower than its two-day high of $ 45.01. At its fourth to date low, the pair traded at $ 28.31. Meanwhile, on Monday, it rose to a new intraday day high of $ 47.63. Consequently, its most recent rebound returned to 68.27% in paper profits.
The most significant price reduction in the Internet Computer market has also followed a stronger 95% decline since the debut of ICP more than a month ago through major cryptocurrency exchanges, including Binance and Coinbase. Therefore, the revenge of the cryptocurrency in the previous 24 hours did little to offset its prevailing bearish bias.
What crashed ICP?
Some community members claimed that Dfinity, the Zurich nonprofit supporter of the Internet Computer project, had dumped an ICP value of nearly $ 6 billion since the token was made interchangeable. Redditor @trapsandwich, who claims to be an early investor, wrote a detailed analysis more than a month ago about r / Dfinity, noting that wallets linked to the Internet Computer team have been constantly sending their signals to exchanges
Dfinity moderators on Reddit deleted the post.
@trapsandwich also claimed another Reddit post that Dfinity had locked the ICP tokens – which their early investors held – for an extra month after they listed the token between crippled exchanges. But at the same time the company has not locked down any of its own 111 million ICP assets.
Another Redditor @ Beneficial-Source147 asserted that the amount of ICP Dfinity tokens discarded since genesis was as high as 90 million. However other Redditors defended themselves, stating that most ICP transfers were grants dedicated to developers, not sales.
Overall, the allegations suggested that Internet Computer intentionally blocked its investors from accessing ICP markets. Meanwhile, the sign continued its way down also among general crypto currency correction.
But the Internet Computer has proven more drastic than its main blockchain rivals, including Ether (ETH), Cardano. So it seems that risks of overvaluation have played out.
In detail, traders have priced ICP differently among many cryptocurrency exchanges on its debut. For example, the ICP / USD exchange rate was as high as $ 3,161 at Binance on the first day. Meanwhile, on Coinbase, the pair’s daytime high was up to $ 630.
ICP’s outstanding supply on 11 May was around 134.8 million against the total limit of 469.2 million. Therefore, on Binance, the market share of the Internet Computer was worth more than $ 426 billion. At the time it would make the Dfinity blockchain project the third most valuable after Bitcoin and Ethereum. Ethereum’s market cap exceeded $ 482.881 billion on May 11th.
What is it now for ICP?
As a project, Internet Computer is another competitor that is trying its luck in the ongoing blockchain-scalable war. But instead of relying on miners and small-scale validators to power a public ledger, Dfinity’s company is proposing to build large data centers and high-quality node machines that could give more bandwidth to its project.
“If the IC succeeds in replacing legacy IT, it would also not need centralized DNS services, antivirus, firewalls, database systems, cloud services, and VPNs,” he said. noticed Mira Christanto, researcher at crypto analytics platform Messari.
ICP had a remarkable debut after its high-level lists through major cryptocurrency exchanges. The sign also boasted support from a host of notable investors, including Andreessen Horowitz a16z crypto venture fund and Polychain Capital, a crypto-focused hedge fund in New York City run by Olaf Carlson-Wee, who previously served as the head of Risk at Coinbase.
Unrealistic estimates and excessive liquidity immediately upon its launch may have hurt ICP. However, the token remains oversold since its launch, according to the interpretations of its relatively strong index, which may serve as a buy signal to some traders.
The author reached out to Internet Computer for further comments.