PeepCoin (PCN) was a sub-penny asset, trading even below one Satoshi, when its price exploded in May. But overnight, PCN lined up for a dramatic loss, sliding by 98% as the promised asset swap failed to materialize.
The price of PCN crashed by more than 95%, with no rebounce in sight as selling continues as much as thin volumes allow.
The reason for the dramatic spike and crash was that in the past few months, PCN promised to transform itself into a new digital asset - Dappscoin. In this manner, the project, which has been around for less than a year, created a community of true believers, who expected the price of PCN to grow by multiples once the asset swap was achieved.
Trouble was, the swap never materialized, and panic selling crashed the price immediately. Former true believers called the project a scam, and the move to be a dishonest exit.
Just days ago, PCN had began trading on Cryptopia. But then, the DAPS Project, which was to be responsible for the swap, announced its failure to deliver:
The statement of the Dapps Project is extremely mystifying: the team announced it discovered several very influential staking wallets, which could, in theory, affect the market price. One of the wallets was known to belong to an old developer of PeepCoin, and it seems there was enough enmity with the new team. Because of those seven staking wallets, for unknown reasons, the DAPS Project decided to self-detonate, bringing much greater harm to the market price, with a potential delisting and a total obliteration for both PeepCoin and DAPS Project.
“To be clear, there will no longer be a swap from PeepCoin to DAPS, as DAPS is not about enriching the original developer of Peepcoin, who has been found to own the second largest wallet,” explained the team.
The community sees this as just an exit scam, covered up by a story of personal enmity. But the greed for a brand-new project made new investors buy up PeepCoin, somewhat similar to the promise of a hard fork for ZClassic (ZCL).
The DAPS Project right now plans a fundraiser to hire a new team and deliver a product, but most believe this idea is also tainted and would never materialize.