IoTeX (IOTX) Giveaway Closes, Sparks Sharp Drop for Volatile Coin

Cryptocurrencies, Exchanges, News

Last week, Binance announced a giveaway of the IOTX coin following its listing on the popular exchange at the beginning of the month. The competition ran until midnight (UTC) on June 20, 2018, and will see 20,000,000 IOTX awarded to the winners.

Half of the total prize pool is to be spread across the top 50 traders, while ten lucky ‘Binancians’ will profit from a random draw. Since trading started for IOTX on Binance, paired with BTC and ETH, the coin began to perform spectacularly well and enjoyed a near 10% rise over the course of the week.

The lesser-known coin had been ranked #200 on CoinMarketCap but, immediately following the giveaway announcement, IoTeX’s fledgling token shot up thirteen places and peaked at #160.

A sharp, but expected fall?

However, following the competition’s close, trading volumes dropped, and the price went with it in a staggering fall of about 15% into the next day. In fact, the bearish run started in the late afternoon and signaled an end to the huge gains enjoyed over the week.

Some investors remain bullish, however, and hope that it will recover from its slump and correct back to the highs previously enjoyed.

A saving grace for the coin could also be that people see longevity through a real economic benefit to the platform that might carry untold applications and benefits.

IOTX is the native token for IoTeX’s planned ‘privacy-centric’ blockchain for the Internet of Things – the phenomenon of interconnected computer devices in everyday objects – with crypto incentives to help launch a community effort for innovation.

The idea is that the platform, built on the blockchain, should be massively scalable, offer total privacy, and allow room for the development of a wide range of new IoT applications.

Introducing a token economy into IoT spaces theoretically gives the platform potential to standardize a field with almost limitless possibilities.

Things change rapidly in crypto, which can often make movements challenging to predict, but if you have faith in the technology when you invest, then you can’t really go wrong. Anyway, in the notoriously volatile cryptocurrency markets, it’s better to have something you can hold on to rather than being carried by the bag holders and the pumpers.

Callum reports on developments in the cryptocurrency world and offers a take on the future of the blockchain. Can often be found with a cup of tea reading an altcoin whitepaper.

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