Centra (CTR) will be delisted from Kucoin, and Binance has hinted it may follow soon, as the price is in freefall. CTR fell by half overnight, losing more than 85% of its value in the past week to $0.06. For an asset that commanded a peak price above $3.70, the loss is catastrophic.
The events have caused Kucoin to immediately delist the token:
The exchange is urging traders to close orders and prepare for pair delisting tomorrow. Withdrawals will be open for a while for now. Yesterday, the exchange closed new deposits for CTR. So far, most of the fire-selling of CTR is concentrated on Binance, but some noticed that even then, buyers bought at low prices.
A similar thing happened to BitConnect (BCC), which had a short-term pump before continuing to slide to current levels of around $0.50.
In the case of Centra, there seems to have been an attempt at a concerted exit scam. The project founders were under the spotlight of the US Securities and Exchange Commission since February 9, and took the following days to clear their offices, bank accounts, and for the founders to plan leaving the country.
The troubles for Centra happened months ago, when Sam Sharma abandoned his position as the project’s president only two weeks after the ICO. However, the token was easily taken up by exchanges and promoted.
The model of creating a debit card related to crypto coins is not unique, with many legitimate projects in that niche. However, the Centra card may have never materialized. But even the delay in the product launch was considered normal by the standards of ICOs, who usually release a beta version months, if not years after the fundraising.
Centra’s white paper was also rather bland, not making big claims, but sticking to the basics. While the reward system may have had a tiered structure, this cannot be known. The most probable scam in the case of Centra was the lack of intention to ever deliver a product. The project survived, and the market price even thrived, while many scams were busted in January, led by the downfall of BitConnect and DavorCoin.