WINk (WIN) IEO: Why Traders See a Scam
The WIN token IEO on Binance was not received as warmly as previous projects, and the rock-bottom prices are raising doubts of the project’s viability.
WINk (WIN), the latest Binance IEO, keeps inviting skepticism. The asset, which was sold at rock-bottom prices of 1 Satoshi, is currently going through a price discovery stage, as the price only reached 4 Satoshi before tanking again.
Currently, WIN is thinly traded, with a price even lower at 3 Satoshi. The extremely low price is raising doubts whether WIN is viable.
The WINk project is essentially a set of TRON-based casino games, also raising doubts about regulatory and legal issues concerning the ownership of WIN tokens. The tokens can be frozen to receive passive rewards, raising issues of considering WIN an unregistered security.
https://twitter.com/MustacheTommy/status/1156981690784350208
While US buyers were originally banned from the IEO, and Binance is aiming to curb trading for US buyers, the asset is still accessible to US residents on secondary markets. The biggest problem, however, is the illiquid trading and the skepticism about the project.
WIN trading volumes is reportedly relatively high, above $23 million’s equivalent, with the bulk of trading in the pairing with Tether (USDT). However, the market price for WIN has failed to budge, and trading in Satoshi is actually limited. This dashed the expectations that WIN could easily add to its Satoshi price and post more spectacular gains.
https://twitter.com/genius_strobi/status/1157668767977148417
Skeptics, however, see the coin as a scam, and go on to predict a delisting as the too-ambitious decentralized gambling project fails to perform:
https://twitter.com/Crypto_Maar3k/status/1158131699286499330
Currently, crypto-based gambling has only a small audience, with a few thousand users each day. It is unknown how the WINk casino games would achieve the promised dividend rewards. It must also be noted that the rewards are repaid in digital assets, and the dollar price is only hypothetical, while liquidation may lead to a price crash.