The analogue of bitcoin in the Ethereum blockchain network fell in price by more than 99% in just a day due to the team’s decision to stop supporting the project.
A clone of bitcoin in a price ratio of 1:0.0001 BTC based on the Ethereum blockchain collapsed by 99% in a day. At the time of this writing, the price of the Soft Bitcoin token (SBTC) is $0.003323 USD (-99.48%).
The fall came after the development team announced the decision to stop development due to the “financial nonviability” of the project.
The Soft Bitcoin development team believes that the project idea can be picked up by the community of another cryptocurrency project – Ampleforth. Tokens unused for project marketing and staking will eventually be burned through Uniswap.
All user assets will be converted to Ethereum cryptocurrency (ETH).
This is not the first project in the decentralized finance (DeFi) market to crash after a short-term price pump. For example, a similar situation previously happened with the KIMCHI token, which raised almost $500 million in a matter of hours after launch, but almost immediately collapsed by 100% in price.
Such a rapid drop in the price of KIMCHI even provoked law enforcement raids on the Gate.io exchange, whose users suspect the site of deliberately listing unverified tokens.
However, almost the entire DeFi market at the time of this writing is in an unstable position. Aggressive selling amid falling bitcoin prices have plunged the historic highs of many DeFi tokens. The correction led to the fact that in a few days the capitalization of the DeFi market collapsed twice from $13.2 billion to $6.3 billion.
A potential negative scenario for the development of the DeFi market was previously announced by the head of the marketing department at Messari Connor Dempsey. In his opinion, a massive misunderstanding of what is happening around DeFi is growing in the cryptocurrency market, and this misunderstanding will ultimately “do nothing good” for those who decide to invest heavily in the rapidly emerging digital finance market.