NOT drops 55% as airdrop farmers sell off post-exchange launch

Notcoin (NOT), a clicker gaming app earned by playing on Telegram, saw its price drop by 55% after securing a listing on major crypto exchanges.

NOTE was trading at $0.006414 at the time of this writing and its 24-hour trading volume was $1.35 billion. According to CoinMarketCap, the token’s market cap dropped to $661 million.

NOT 24 hour price chart | Source: CoinMrketCap

Notcoin is a web3 game project that started on January 1 within The Open Network (TON) ecosystem. It works as a mini application within Telegram, allowing users to earn money with a simple tap on their phone screen. Earnings can be increased by various additional activities.

The mining phase of the game ended on April 1. Originally, the Notcoin team planned to launch the NOT token on April 20 to coincide with the Bitcoin halving, but the launch was delayed twice to ensure a smooth distribution.

NOT has gained a lot of attention in recent weeks after crypto exchanges such as Binance, OKX, KuCoin and Bybit announced that they would add the token to their launchpads.

Following distribution on various exchanges, Notcoin began trading at a fully diluted valuation (FDV) of over $1 billion just a few hours after the start of the airdrop on May 16.

The token achieved $294 million in volume in its first hour of trading. However, despite reportedly adding 35 million users to its ecosystem, the gaming token began to decline sharply. The 55% crash did not occur as airdrop farmers continued to sell their tokens.

NOT’s decline mirrors the pattern of many cryptocurrency airdrops, which often experience massive sell-offs post-launch. On October 20, Layer-1 blockchain Aptos saw its cryptocurrency APT plummet after a 20 million airdrop. Similarly, SocialFi project friend.tech saw a 98% price drop on its FRIEND token shortly after its launch on May 3.

Many expected it would not spark a resurgence in the gaming token category, but it is currently underperforming expectations. Gaming tokens have generally underperformed in 2024, especially compared to other trending categories such as AI and meme tokens.