Skycoin (SKY) was looking good, headed for the moon - until it crashed and slid, to the current levels of $7.09, down more than 70% since its peak above $32 at the end of May. The hard drop in prices has made the crypto community portend yet another unraveling, much like those of BitConnect, DavorCoin, or Bitcoiin.
The official version for the drop in prices includes an accusation of the Skycoin marketing team, and a kidnapping story that went unreported for days. The story started with an alleged embezzlement and an attempt to unfreeze a large haul of SKY assets:
“The trigger for the events was the discovery that the previous Skycoin China marketing team (EVOLAB) had embezzled approximately 100,000 Skycoins over the course of the past half year. In light of this discovery and their failure to return or account for the embezzled coins, the relationship with this team was terminated.”
In fact, the embezzlement and dumping on Binance may be much heavier than reported. In a recent message from Synth, the CEO and founder of Skycoin, Binance received a warning of an account trying to sell stolen SKY. However, Binance only froze withdrawals, but kept trading alive - hence, the account managed to dump 200,000 SKY for Bitcoin. For now, the blocked account cannot withdraw the Bitcoin. However, panicked dumping continued for a while, pushing SKY toward levels not seen since last November.
But this was not the only trouble for Skycoin in the past days. Additionally, the marketing team broke into the home of the Skycoin founder, Synth, and his wife, forcing him to open wallets for 18.88 Bitcoin and 6466 SKY.
Scandal for Skycoin does not end here - the project, which is right now in the testnet stage and plans to soon start the second round of shipping mining equipment, has also seen accusations and some evidence of insider trading. The SKY digital asset was not sold in an ICO, but had multiple distribution events over the past months.
The entanglement of stories and versions has caused rumors and doubts, seeing the kidnapping story as a fake distraction, while the team may be planning a form of exit scam:
However, the Skycoin team has shared in its official statement plans to continue with the project development. Traders also believe the price may actually rebounce after the crash. But for Skycoin, it is best to stay away for now, until the project proves its seriousness and merit.