Why ME Token Price Surged To $25 and Crashed 80% After Binance Listing?
The post Why ME Token Price Surged To $25 and Crashed 80% After Binance Listing? appeared on BitcoinEthereumNews.com.
The launch of the Magic Eden (ME) token brought attention in the crypto community, as the token was listed on leading exchanges such as Binance and Coinbase. These listings caused an initial surge in price, with the token climbing to $25 shortly after its debut. However, this rapid increase was followed by a steep decline of over 80%, settling around $5, which sparked widespread discussion among traders and analysts. Nevertheless, the sell-off was swift, influenced by several factors, including profit-taking and the dynamics of its airdrop distribution. Here’s Why ME Token’s Airdrop and Technical Issues Led to Major Price Volatility Following its listing on Binance and Coinbase, ME token surged to $25 due to the influx of new buyers. This was driven by the excitement around the token’s debut on major exchanges and the increased demand. Traders speculated on its potential, leading to a brief surge in activity. However, the price surge was short-lived. A major factor in the token’s price behavior was the initial airdrop, which distributed 12.5% of the total supply, equivalent to 125 million tokens. This distribution was part of an effort to engage users of the Magic Eden platform. Data revealed that 92.3 million tokens, worth $465.8 million, were claimed on the launch day, representing 73.9% of the airdrop allocation. The airdrop provided claimants with what amounted to “free money,” incentivizing immediate selling to capitalize on profits. Analysts observed that users, many of whom received allocations valued between $200 and $5,000, opted to sell their tokens during the initial price spike. This selling pressure contributed to the rapid drop in ME price from $25 to below $5. Technical Challenges During Token Claim In addition, technical difficulties disrupted the airdrop, further complicating the token’s launch. Users reported issues with Magic Eden’s mobile app, describing it as glitchy…
Filed under: News - @ December 12, 2024 4:16 am