Tezos (XTZ) Sinks Deeper below ICO Price Amidst Market Slump
XTZ prices shrank by 75% in just a month, slipping at a much faster pace compared to other altcoins.
The slide of Tezos (XTZ) has accelerated, and the asset is now trading significantly below the price of its initial coin offering (ICO). The token sale was conducted at $0.51 per XTZ, and bonuses lowered the effective price to $0.42. The regular ICO price awarded 5,000 XTZ per Bitcoin (BTC). Currently, 5,000 XTZ cost around 0.5 BTC after Tezos dropped from $0.38 to $0.34 on Wednesday at around 7:30 UTC.
In the past month, the asset has unraveled from levels near $1.30, and there are no signs of recovery.
XTZ met with trouble from the start. While speculative trading pushed the price as high as $6.66 on January 7, 2018, the subsequent crash led to a much lower range. Even the official launch of the mainnet did little to stem selling.
One drawback of the ICO participation was the fact that the proper XTZ tokens were not immediately distributed. Instead, backers received pre-mainnet tokens in what was deemed “an act of good will.” Enmity between the Tezos Foundation and Andrew and Kathleen Breitman, the creators of the code, led to a further delay in the project’s launch.
In the end, the mainnet arrived just in time for some of the worst months of the bear market. XTZ, which still trades mostly on Gate.IO and Bitfinex, also suffered from relatively low liquidity. More than 64% of all XTZ trading is against Tether (USDT), and the rapid price decline has accelerated selling to at least lock some value into the stablecoin.
The only silver lining to the current price slide is that buying the minimum of 10,000 XTZ for baking is more affordable. However, XTZ is not only down 97% from its peak, which represents one of the steepest losses in the crypto space, but has also lost 87% year-on-year. At the mainnet launch on September 14, XTZ traded at around $1.67, going on from there to sink 80% lower.
The current market capitalization of XTZ is $218 million versus $230 million collected in the ICO in 2017. Despite the setback, Tezos supporters see the project as promising and potentially participating in the future of the crypto sector by being a platform for security token offerings (STOs).
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.