As midnight closes over Europe and the US starts to settle in for the evening, the community of one particular ICO called EdenChain goes wild. At first, it starts out with a sudden flurry of messages in the coin offering’s official Telegram group.
Messages start pouring in, spammers throw everyone in disarray, people start noticing a sudden drop in the value of the coin, and the administrators that have so far kept the peace are nowhere to be found to provide some light in the middle of this chaos.
EdenChain is supposed to be a complete service targeting Korean customers for companies looking to start ICOs of their own, represented by a token whose value wasn’t that high to begin with. Since the token was listed on CoinMarketCap on September 18, its peak value has beenonly $0.05.
Over time, that value diminished to $0.04 over the course of a week. But the event that proved most calamitous was a sudden jerk that sent it careening into a valuation of $0.03 from $0.035—a 14.2% drop—in the span of a mere 10 minutes as Koreans were turning off their lights.
This price movement didn’t come through an extremely high trading volume; trading that day showed no noteworthy anomalies. There was only one thing that could have really set the whole thing off: An increase of 15% of tokens by 150 million EDN could have sparked the sudden price slump.
Trading volumes and some slight inconsistencies could account for the other 0.8% in the drop.
In its blog, the EdenChain team explains what this token infusion is for.
“The 15% (150,000,000 EDNs) strategic partners allocation was used to bring on board several strategic partners including exchanges and consultants who have helped make EdenChain a success! These strategic partners have been helping EdenCha…