Notcoin price has joined the other cryptocurrencies in a strong sell-off as concerns about the next catalyst remain. The NOT token crashed to the crucial psychological level at $0.010 on Friday, its lowest point since May 29th. It has retreated by over 65% from its highest point this year.
Why Notcoin price is falling
The Notcoin price has crashed hard in the past few days for several reasons. First, the drop happened because of the ongoing weak sentiment in the crypto industry. Bitcoin has slipped from the YTD high of over $73,000 to below $57,000.
In most cases, altcoins move in sync with Bitcoin’s price movement. They fall when Bitcoin’s price retreats and vice versa. For example, most altcoins rose to their all-time or multi-year highs in March when Bitcoin reached its record high.
Bitcoin is dropping because of the ongoing sales by the German government and Mt.Gox. Germany has already deposited hundreds of coins in exchanges in preparation for sales. In a statement on Thursday, Justin Sun, the founder of Tron, said he was considering buying these coins in an off-market transaction.
Second, there are concerns about the future of Notcoin now that it has launched its airdrop. Notcoin became highly popular a few weeks ago as it lets people earn free tokens, which they can monetize after its airdrop.
The airdrop has already taken place, but investors are worried about its future. Developers are working to improve the token’s utility to address this concern. On Friday morning, the developers announced that Notcoin Explore had started allowing community-oriented projects to be promoted, aiming to attract a motivated audience.
They reported that over 200 projects had already been launched via the platform. While these projects have garnered a large number of followers and support, it remains uncertain whether they will ultimately succeed.
Competition from TapSwap and Hamster Kombat
The other reason the Notcoin price is plunging is that competition in the tap-to-earn industry is rising. This competition comes from projects like TapSwap, Hamster Kombat, YesCoin, and Dotcoin.
These platforms have all seen substantial user growth in the past few months. Hamster Kombat has accumulated over 200 million users from around the world in just less than 3 months. Its YouTube channel has broken the record as the fastest-growing one in the industry, as it gained 32 million subscribers in less than a month.
TapSwap has also gained over 60 million users, and its YouTube channel has added over 4 million subscribers. AvaCoin has also added over 8 million users, and this trend is accelerating. As a result, many people have shifted to these platforms, hoping to make good returns when they launch their airdrops.
Overall, investors are concerned that this trend could be a sign of a new crypto winter, similar to what we saw in late 2021 and throughout 2022.
