The cryptocurrency sector is witnessing a recent gold rush, and this time, it’s happening on a messaging app. Notcoin (NOT), a Telegram-based token, has exploded in value over the past week, surging 400% and reaching its all-time high of $0.027. This astronomical rise has left analysts scrambling to grasp the driving force behind this social media-fueled frenzy.
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From Humble Beginnings To Meteoric Rise
Notcoin’s journey began modestly as an in-game currency for a Telegram clicker game launched in late 2023. Players could earn NOT tokens by tapping a virtual gold coin, an easy yet addictive mechanic that attracted a big user base throughout the popular messaging platform.
This initial success paved the best way for a wider integration with Telegram in May 2024, allowing users to earn tokens through various “earning missions” and tasks. This play-to-earn model, coupled with the large user base of Telegram, appears to be the important thing to Notcoin’s recent surge.
NOTUSD trading at $0.021 on the 24-hour chart: TradingView.com
The token’s skyrocketing price has also been fueled by a major jump in every day transaction volume. Notcoin now boasts a every day trade volume exceeding $4.5 billion, placing it among the many top 4 most actively traded cryptocurrencies. This surge in activity indicates a growing interest from investors and potential recent users wanting to capitalize on the play-to-earn opportunities offered by Notcoin.
Whales And FOMO: A Recipe For Volatility?
While the Notcoin rally is undeniably impressive, whispers of caution linger throughout the crypto community. The cryptocurrency market is notorious for its volatility, and such rapid price increases often raise concerns a couple of potential bubble.
That is further amplified by reports from on-chain data provider Lookonchain. In response to Lookonchain, a big investor (“whale”) profited significantly from the recent price surge. This whale reportedly purchased a considerable amount of wrapped Notcoin (wNOT) before the official listing of NOT.
The worth of #Notcoin( $NOT) has risen by greater than 400% up to now 7 days.
We noticed that a whale has an unrealized profit of $862K on $NOT.
He spent 50,550 $TON($278K) to purchase 46.4B $wNOT before $NOT was listed.
1000 $wNOT might be exchanged for 1 $NOT.
On May 21, he… pic.twitter.com/Da29qniVzg
— Lookonchain (@lookonchain) June 3, 2024
Lookonchain highlights that upon listing, the whale converted their entire holding of wNOT into NOT, leading to an unrealized profit of over $862,000. The whale’s sizable holdings and potential future actions could significantly impact the token’s price stability.
One other factor to contemplate is the fear of missing out (FOMO) currently driving the market. Recent investors, lured by the prospect of high returns, may be rushing into Notcoin without fully understanding the underlying technology or the risks involved. This may lead to a situation where the value becomes inflated beyond the token’s actual utility, setting the stage for a possible correction in the long run.
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The Road Ahead For Notcoin
Despite the inherent risks, Notcoin’s success highlights the growing potential of integrating cryptocurrency with established social media platforms. The benefit of access and user-friendly experience offered by Notcoin’s play-to-earn model may very well be a blueprint for future blockchain integration inside social media.
Nonetheless, the platform’s long-term viability hinges on its ability to take care of a healthy user base and display the real-world value of the NOT token beyond its current gaming and task-based applications.
Featured image from Coben Executive & Corporate Advisory, chart from TradingView