Waltonchain (WTC) Turns Lower Again on Loss of Credibility
The project saw its price drop sharply after a Twitter scandal with potentially unfair giveaways, and the recovery was short-lived.
Waltonchain (WTC) continued its slide after a brief spike, losing more than 16% in a day to slide to $18.29. The most recent slide in WTC was accelerated by the news of a Twitter giveaway where a team member was awarded free coins.
WTC was seen as one of the promising Asian platforms, but now the project's appeal has been overshadowed. The asset may be set to see thin volumes trading on Binance, where nearly 80% of trading volumes are concentrated. Yet the mistake of awarding a team member in what was promised to be a random draw created doubts around the project.
The crypto community has been very aware of scams lately, and even small faults may trigger an exit from a coin.
Yet there is still long-term enthusiasm about WTC achieving influence by real-world applications and partnerships. For now, WTC remains relatively hard to purchase for Western investors, except through Binance, and is still a relatively unknown asset potentially harboring risks.
The other event that caused distrust in Waltonchain was the supposed partnership with Alibaba to turn Xiongan into a smart city. It turned out that the partnership was not as well-established as previously thought, and the international community may have been misled what exactly the role of Waltonchain would be.
The project had to explain that it will no longer state partnerships in advance:
Due to the current uncertainty of blockchain policies, our team has decided that in the future we will announce major partnerships depending on the situation so as not to affect the real implementation of blockchain technology. #Waltonchain $wtc— Waltonchain (@Waltonchain) March 7, 2018
Yet the biggest potential advantage for Waltonchain is to become one of the crypto projects which gain from a favorable treatment by the government. While China has been strict on crypto exchanges, there are signs of support for projects, with NEO in the lead, but others like TRON (TRX) receiving favorable treatment.
Chinese startups also have the advantage of developer talent, and a well-established fintech sector for mobile payment systems.
Yet Waltonchain remains one of the more minor projects, and may be a risky investment or a trading position, due to low volumes and still significant volatility.