The Foin project has just issued a long explanation of the recent price slide and showed that the project didn’t plan at all for an exit scam and will continue operating as well as we are reading further in the coming altcoin news.
The team denied pumping the FOIN token price artificially before it crashed in one day and FOIN increased higher last December in defiance of the general direction of the crypto market. According to recent blog posts, the FOIN project price was organically determined by professional traders. Just after they unlocked the tokens for open trading, the price of the coin dropped dramatically by $4,000 to $6.79 and the volumes also crashed to nothing. The entire crypto community was highly skeptical that the FOIN token had a fair valuation.
The P2PB2B exchange which is the chief market where the coin traded is still unregulated and placing orders is unrestrained. It could be possible that both the volumes and traders can be simulated and with no real selling pressure they will reach an unrealistic valuation. However, the crypto project’s team claimed that the flaw happened because of amateur traders who rushed to sell what they owned. This is not unusual since the ICO buyers usually try to cash out soon because they know that token prices drop quickly. The goal of the Foin token was to create a stable and reliable crypto asset that can be used for financial services.
The project’s flaws go even deeper. The distribution and popularization of the FOIN assets were performed by Finance.org which is a company that has a problematic record and several run-ins with financial authorities in the Southeast Asian market. The asset was offered as a vector for real estate investment for the Vietnamese market. For the end buyers, investing in crypto at high prices comes with no guarantee. The team excused itself mainly suggesting the price could recover soon and that most of the investors were holding their tokens too. The team promised:
“Even though the FOIN price has suffered serious losses, the FOIN, FoPay, FOIN Foundation and AliExchange teams are more determined than ever to work hard to regain the users’ confidence and trust. 2020 will be a year of stabilization and growth, which will require the precise execution of a consistent strategy across the board.’’
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