The launch of the Tezos project and token trading is not off to a good start. Even though this launch had been anticipated for quite some time, it appears token holders are very intent on getting rid of their tokens. Thanks to steep daily declines, the value per XTZ has already plummeted to $1.33 and will seemingly head lower.
Tezos Token Woes Are Not Over
After the year-long struggle which Tezos has endured, the project finally made a breakthrough about a week ago. Now that all of the major issues have been settled internally, the team officially announced the launch of its beta net. That should have been a joyous occasion and had a positive impact on the XTZ token price.
Although the Tezos testnet seems to be trucking along nicely, token holders are not the most patient people in the financial world. Considering that so many people had to wait nearly a full year prior to receiving the tokens they had bought during the Tezos initial coin offering, it is not entirely surprising that token holders have been selling their holdings ever since exchanges officially enabled trading. In the past few days, the XTZ price has been plummeting at an accelerated pace.
The XTZ sell-off started taking shape four days ago, pushing the XTZ value from $4 down to $1.33. There has been no positive momentum for this token since that time, and it seems sellers are mainly interested in liquidating their holdings at any price they can get.
At the time of writing, the XTZ value had fallen by another 30.23% over the past 24 hours. Although volatility is nothing new in the cryptocurrency world, such steep declines will always raise a lot of questions. This seemingly confirms that very few people have any confidence in Tezos or the future of this project at this stage. That’s an unfortunate development, although the sentiment is understandable.
Whether or not the Tezos price will recover from this onslaught is very difficult to predict at this stage. It has become apparent that the project’s history of controversy, setbacks, and lawsuits have eroded a lot of the positive momentum associated with it during the initial coin offering. The project is far from dead in the water, as the testnet is officially live and open to everyone. Even so, those developments may have come a little too late, at least for the average ICO investor.
Current token prices are always a snapshot. They tell one part of the story, and most currencies on the market today have seen big setbacks at some point in their histories. Even Bitcoin faced a 99% retracement one year, and it survived. It remains to be seen if Tezos is equally resilient and whether or not there is any genuine interest in this project among existing and new investors alike.
Image(s): Shutterstock.com