Once compared with Bitcoin, the “virtual currency” ICP dropped in price without braking, losing 93% of its value

Such is the case with the Internet Computer (ICP), a peculiar phenomenon of the cryptocurrency world. This “virtual currency” used to increase in price dramatically and now it is falling just as fast.

Internet Computer phenomenon with the ambition to change the world

In early May 2021, the world witnessed the impressive launch of Internet Computer. This is an open source cloud computing platform built by the DFINITY Foundation – a non-profit organization based in Switzerland.

Established and deployed since 2015, by 2018, the Internet Computer project has raised 195 million USD from investors to embark on realizing its ambition.

Internet Computer was created to solve the problems of today’s data center systems, that is, the ability to secure information and the monopoly of cloud computing service providers.

Internet Computer is a special project with the ambition to change the world.

The creators of Internet Computer want to develop a network that does the job of data centers but is distributed, uses blockchain technology and is able to operate without the management and control of any data any organization or company. Instead, the network will be operated by the contribution of all computers in the system.

In other words, Internet Computer was created with the aim of changing the entire traditional data center system to a new model, using Blockchain technology.

With such great ambition, it is not difficult to understand that Internet Computer attracted great attention from the technology world when it first appeared on cryptocurrency exchanges. Even more surprising when this is a rare project listed on all 4 major exchanges at the same time: Binance, Coinbase Pro, OKEx and Huobi.

As soon as it appeared, Internet Computer made waves in the whole market when it attracted billions of dollars of investment capital. The total capitalization of Internet Computer was pushed up very quickly when it reached nearly $ 72 billion only 1 day later. This result puts ICP in the top 4 cryptocurrencies with the largest total market capitalization, just behind Bitcoin, Ethereum and Binance Coin.

From the top of fame to the bottom of the abyss in just 6 weeks

There was such a perfect start, but few people would have guessed that, Internet Computer had dropped without brakes just a few weeks later. Once priced at nearly $800 on May 11, by the end of June, the ICP price was just over $28. The total market capitalization of Internet Computer thus fell from $72.8 billion to $3.9 billion.

At the present time, Internet Computer price gradually recovered and kept at 50 USD. However, compared to the price of more than 700 USD at the peak, the price of this “virtual currency” that once held the 4th position has decreased by 93% in value.

Once compared with Bitcoin, the
The price of Internet Computer has fallen without stopping since the time it was listed on major exchanges.

Currently, the total market capitalization of Internet Computer is only 6.7 billion USD. Internet Computer also holds only 18th place on the ranking of the world’s most valuable digital currencies.

Expected so, why did Internet Computer slide so long? This is clearly the question of everyone interested in the world of cryptocurrency.

According to the community of those who invest in ICP, this “virtual currency” has dropped in price because of the unscientific distribution.

Many people have invested in buying Internet Computer at a very cheap price, only a few dollars. So when the price of ICP rises too quickly, these investors have the psychology of taking profits because the capital they spent has received many times more money than before.

Not only that, having a large amount of ICP unlocked on the market every month also directly affects the value of this coin. When the demand for profit taking is still there, plus the supply is too large, this adds to the selling pressure. Therefore, it is understandable that ICP does not brake.

The unscientific allocation of coins is one of the reasons for harming this project.

According to analyst Denis Vinokourov of Synergia Capital, there is another reason affecting the price of ICP, which is the FOMO effect (fear of losing opportunities) that has pushed Internet Computer prices up too high, exceeding the expected range of investors. investors. Therefore. Many people do not hesitate to take profits when they see that their goal is achieved.

Although it has lost 93% of its value from its peak, Internet Computer still has a market capitalization of $ 6.7 billion and is a project that is considered to have the potential to change the world. But the story of Internet Computer is a clear demonstration of the risks that investors must take when participating in the world of cryptocurrencies.

Trong Dat

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