Verge (XVG) Price Drops Ahead of Partnership Announcement
The Verge project, due to the extensive hype, has mixed publicity, and is seen as a potential scam by many.
The Verge (XVG) market price sank a day ahead of the long-awaited announcement of a large partnership. XVG sank by more than 8% in the past day, to $0.082, as the rumors of a partnership already lifted the asset in its latest rally. XVG almost recovered its record against BTC - but could not beak above 10 cents.
At this point, the XVG market price looks precarious, and the trading volumes immediately started to sink, after the hype of the past few days. On Binance, XVG is still among the top 10 traded assets, but the conditions may change at any moment.
In the past day, indications of the upcoming partnership have accelerated. Lead developer Sunerok, or Justin Vendetta, has given hints that it is a leading company with billions in revenues. But the official announcement would come at 15:00 London time. This could make the hours leading up to the announcement see more trading, but with an unknown effect on the market price.
At the same time, the crypto community has remained highly skeptical of Verge, precisely in relation to its upcoming partnership. The biggest question was, why the project needed to raise coins in order to attract an already rich investor who could buy the coins.
The Verge project has raised funds in the past, to reach various milestones, acting in a manner similar to an ICO. However, the latest transaction record saw 18 million coins moved from the fundraising wallet to Binance, with the potential for selling and depressing the price. While the sum is relatively small compared to the 76 million coins collected in the fundraiser, there are still questions about why the assets would be liquidated. Initially, the Verge team explained that the partner actually wanted to own and hold some coins, and have the support of the community - hence, it is mystifying why the funds are sold, and not given to the partner.
And while the Verge partnership may be impressive, at this point the peak prices may invite selling, and quickly wipe out value. Still, for now, XVG is out of the sideways drift and slump in the past weeks.