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Dfinity's ICP Token Sees Extreme Price Volatility Amid Bevy of Exchange Listings

Dfinity's ICP Token Sees Extreme Price Volatility Amid Bevy of Exchange Listings

Dfinity's ICP Token Sees Extreme Price Volatility Amid Bevy of Exchange Listings

The swings in ICP's value has come as Binance moved to list the internet computer token.

The swings in ICP's value has come as Binance moved to list the internet computer token.

The swings in ICP's value has come as Binance moved to list the internet computer token.

AccessTimeIconMay 11, 2021, 4:02 PM
Updated Aug 19, 2021, 9:20 AM

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A bevy of exchange listings has kept the ICP token traders busy in the past 24 hours.

Dfinity Foundation's internet computer (ICP) token, which allows users to participate in and govern the blockchain network, went live on the U.S.-based crypto exchange Coinbase Pro on Monday.

Since then, several major cryptocurrency exchanges including Huobi, OKEx, and Binance have added support to the coin, leading to massive price swings.

The cryptocurrency was changing hands around $400 on Coinbase at press time, having dropped from $630 to $250 on Monday, per data provided by TradingView.

Prices tanked roughly 10 minutes after the Coinbase listing on Monday, shedding 60% in value to trade in line with the $300 to $400 price range implied earlier in the day on the FTX exchange’s derivatives contract linked to the ICP token.

ICP is the utility token of the Dfinity Foundation's platform and is used for governance, decision making and network transactions.

The platform has raised $121 million of equity funding, with investors including Andreessen Horowitz, Polychain Capital and Scalar Capital, among others.

ICP Hourly Price Chart

Prices recovered some 70% from Monday's low, with traders taking a second punt on the cryptocurrency in the run-up to its listing on Binance, the world's largest crypto exchange by trading volumes, early today.

Binance said late Monday the token would be available for trading around 01:00 UTC on Tuesday (9 p.m. ET Monday). The coin opened at 249 USDT and was last seen trading around 420 USDT. It's trading at similar prices on OKEx and Huobi.

The price volatility of the ICP token may settle down as days progress and the market matures. Dfinity's long-awaited platform for smart contracts operating at internet speed went live on Friday, under the watchful gaze of the Network Nervous System.

The platform's layer 1 protocol is attempting to flesh out a decentralized public network with an eye on becoming an "extension of the internet," as the foundation's founder Dominic Williams put it to CoinDesk.

Some 469,213,710 ICP tokens were created at the Genesis unlock on Monday at 9 a.m. PT (12 p.m. ET), which implies a fully diluted market capitalization of $182 billion at the ongoing price of $390. The fully diluted market capitalization is what market valuation would be if all coins are in circulation.

However, as per data tracking website CoinMarketCap, currently there are 123.74 million coins in circulation. That amounts to a circulating market capitalization of $48 billion.

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