STOX (STX) Price Unravels Despite Debunked Rumors of an Exit Scam

Published on 13 November 2018 by Cryptovest Staff

STOX defended its reliability, but the market price accelerated the losses following faked rumors of an exit scam.

STOX (STX) keeps crashing following rumors of an exit scam, with the damage already done despite the team’s attempt to calm traders. In the past week, the news caused STX to extend the crash, and it lost 33% of its value with a move from $0.05 to the $0.03 level.

For further details, refer to the official post on Twitter: https://twitter.com/stx_coin/status/1061639866147069953

The STX sell-off continued on Gate.IO and HitBTC even after the team explained away the claims of a scam. The message suggesting the STOX team was pulling an exit scam, in fact, revived an old operation following the ICO, when one of the developers transferred tokens through a dedicated smart contract.

The message, interpreted as FUD (fear, uncertainty, doubt), was especially effective following a similar event surrounding the recent Oyster Protocol (PRL) smart contract stunt. But in that case, the chief developer managed to generate tokens and dump them on the markets, in essence sabotaging the entire project.

No such thing happened in the case of the STOX project, yet the misrepresentation of smart contract activity caused panic in the markets.

At the same time, STX is seen as having the potential for a speculative investment, given the relatively limited supply of 51.4 million tokens. STX has traded as high as $2.36 in August 2017, right after the token sale, and again reached a temporary peak at $1.33 on January 10, 2018. But the bear market saw the price wiped out, and left STX as one of the biggest losers.

The STOX project received hype for attempting to tokenize the predictions market, with a model similar to Augur (REP). This also exposes STOX to the risk of regulatory pressure. STX was delisted from KuCoin, one of the major exchanges, in the summer. The prediction market is also interpreted as a form of betting, generating the skepticism of exchanges.

Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.