While almost all coins have taken a fair share of the price plunge, Dfinity’s ICP token is particularly drawing a lot of criticisms from its community.
Dfinity’s Internet Computer Protocol (ICP) token has lost its luster, despite its current ranking as the 18th largest cryptocurrency by market capitalization. At the time of writing, Dfinity’s ICP token is changing hand at $63.53 according to data obtained from CoinMarketCap. At this price level, the coin which was among the sensations of the crypto ecosystem when it launched in May is down by more than 80% from its all-time high (ATH) of $700.65.
The broader cryptocurrency industry is experiencing a massive bearish plunge as several fundamentals weigh down the outlook of Bitcoin (BTC), the premier digital currency. While almost all cryptocurrencies and digital tokens have taken a fair share of the price plunge, Dfinity’s ICP token is particularly drawing a lot of criticisms from its community, especially members on Reddit forums.
According to a user (SweetPie123) on the r/CryptoCurrency chat board, the ICP tokens have one of the most ‘greedy’ distribution mechanics around.
“The coin with the worst tokenomics in the history of crypto. 1% airdropped, 50% to the team, rest sold to VC’s who recently were able to dump their coins,” the user said “These early investors bought anywhere from as little as 3 cents to around 5$ per coin, currently trading at $67. Every month new supply gets unlocked, increasing sell pressure. The coin itself doesn’t even sound that bad judging from reading about their tech, it’s just the distribution that’s disgusting. Sad to see a decent project getting ruined by greed.”
While the current pricing is not particularly bad for a coin priced at the said amount at the early stages, the rate of massive decline is what the community is concerned about. The Internet Computer prides itself in brandishing a technology that will unseat Ethereum, Polkadot, and other decentralized finance-focused protocols. However, the community is convinced the project is centralized to benefit “the elites and their cronies in IMF and WEF,” according to a user with the handle, “Set1less.”
Dfinity’s ICP Token Is Not Alone
While Dfinity’s community members are dissatisfied with the project per the ICP token performance thus far, other similar projects that launched around the same time including Casper Network (CSPR) are also seeing a massive price and valuation plunge. For Casper, the token launched at prices ranging as high as $40 on some exchanges including Gate.io, however, at the time of writing, the coin is trading at $0.2465.
Casper’s community members have also faulted the project’s tokenomics, with notable friction in the team’s inability to disclose the current supply at launch, a figure many fear runs into a billion. Per the token release schedule for the project, a huge number of tokens will begin to unlock later in the second half of this year, further increasing the potential for increased selling pressure.
In all, both the Internet Computer protocol and Casper Network brandishes solid tech fundamentals, however, if the community loses trust in the project due to tokenomics, it may offset the longer-term performance of the network in all. Based on this, the team behind both projects will need to respond to these concerns as soon and as best as possible.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.