The Foin project, issuer of the unfortunate FOIN token, issued a lengthy explanation of its recent market price fiasco. The project, at the least, showed it has not planned an exit scam and will continue operating.
Team Denies High FOIN Prices Were Artificially Pumped
The team also denied pumping the FOIN token price artificially, before it tanked within a day. FOIN flew high last December, in defiance of the general direction of the crypto markets. According to the recent blog posting, the FOIN price was organically determined by selected, professional traders.
Just after unlocking its tokens for open trading, suddenly the token’s price slid from nearly $4,000, down to $6.79 and volumes dwindled to nothing. Needless to say, the crypto community was highly skeptical that FOIN had a fair valuation.
The P2PB2B exchange, the chief market where FOIN traded, is unregulated and placing orders is unrestrained. It is entirely possible that both volumes and trades can be simulated, and with no real selling pressure, to reach an unrealistic valuation.
However, the crypto’s project team claimed the flaw lied with amateur traders, who rushed to sell their haul. This is not unusual, as ICO buyers usually try to cash out early, knowing that token prices sink quickly. But the aim of Foin was to create a stable, reliable crypto asset for financial services.
Unfortunately, the project’s flaws lie even deeper. The distribution and popularization of the FOIN assets were partially performed by Finance.org, a company with a shady record and multiple run-ins with financial authorities in Southeast Asia. The FOIN asset was offered as a vector for real estate investment for the Vietnamese market.
For end buyers, investing fiat or crypto at high FOIN prices came with no guarantees. The team excused itself, vaguely suggesting the price may recover, and that some investors were patiently holding onto their tokens.
Team Aims to Salvage Project, Denies Exit Scam Allegations
Now, the project team wants to salvage the coin with a series of measures. Those include locking up the tokens again in a form of peer-to-peer collateralized lending. The recently acquired AliExchange will also start offering risky futures trading with high leverage in a bid to boost liquidity. The tokens would also be distributed in an airdrop – a mockery to investors that paid real money with hopes that Foin and Finance.org would offer legitimate returns.
“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,” the team promised, keeping the optimistic outlook.
But investors remain skeptical, and some attempt to sell the token through social media.
https://twitter.com/temanss/status/1215411874633670657
At this point, it is uncertain if the token sales are legitimate, or another scam riding on the back of the FOIN debacle. The team promises further listings on exchanges, but the asset may remain one of the riskiest within the crypto space, limited to true believers or new naive investors.
What do you think about the crash of the FOIN token? Share your thoughts in the comments section below!
Images via Shutterstock, Twitter: @temanss