Privacy-oriented blockchain project @MidnightNetwork (NIGHT) has been in the news recently due to some negative news in the cryptocurrency market. Since entering the market, the token has faced issues such as major price drops, airdrop sales, and scam alerts. Below are the main negative news surrounding this token.
1. Big price drop after launch
The Midnight token experienced a major price crash shortly after its listing on the market. Initially the price of the token dropped by around 60%–90%, which surprised many investors.
According to analysts, the main reasons for this decline were:
Quick sale to users who get AirDrop
Additional token supply
Uncertainty in the market as it is a new project
As a result, there is a huge sales pressure in the market since the launch.
2. Airdrop Dumping (Airdrop Dump)
A large amount of tokens were distributed through a large airdrop called the “Glacier Drop” of the Midnight project. But many users sell free tokens in the market soon after getting them.
Due to this, a lot of tokens suddenly appeared in the market and the price fell quickly.
3. Scam and Phishing Warnings
Phishing scams spread through many fake websites and social media links while claiming $NIGHT tokens.
In some cases there are also reports of users signing on the wrong link and emptying their crypto wallets.
Due to this, users are advised to use only official sources.
4. Criticism of Tokenomics
Some analysts in the crypto community have also questioned Midnight's tokennomics.
Total supply of 24 billion tokens
Large part distributed in airdrop
Early selling pressure despite vesting plan
Due to these reasons, many traders think that the market has been oversupplied in the beginning.
5. Market cap declines rapidly
Midnight Token's market cap rose to nearly $2 billion shortly after launch, but then quickly dropped to $700 million.Which indicates volatility in the market.