Monad price will be in the spotlight this week as the developers launch its mainnet after a highly successful Initial Coin Offering by Coinbase, the top American exchange.
Summary
- Monad raised $269 million from investors during its token sale last week.
- The developers will launch the mainnet launch on Monday.
- The MON token will start trading on Monday, with history showing that it will drop.
Monad, a layer-1 network with EVM compatibility, raised $269 million in the most successful ICOs this year. Over 85k participants bought the MON token, a sign that it has momentum. Most importantly, the ICO was 1.43x oversubscribed.
The next stage will now happen on Monday when it launches its mainnet. It will also make its debut in top exchanges, including popular names like Bybit, Coinbase, and Bybit.
This listing will enable ICO participants, investors, and insiders start to exit their positions. It will also enable outsiders who missed the ICO to buy and potentially hold it for more gains in the future.
Investors with a long-term view believe that Monad is a true disruptor in the crypto industry. Besides, it has over 200 validators, superior speeds than other networks, EVM compatibility, and partnerships with top developers, including LayerZero, Pyth Network, and Chainlink.
Why Monad price may crash after the airdrop
Still, there are some potential reasons why the MON price will crash after the token listing on Monday. First, it is common for ICO investors to dump their tokens after an airdrop happens. This explains why most tokens like Pi Network and LayerZero drop after the earnings.
Second, the airdrop will provide a good opportunity for its investors like Paradigm, Dragonfly, Electric Capital, and Castle Island to realize their returns. As such, there is a likelihood that they sell part of their investments after the airdrop.
Third, history shows that most newly launched tokens drop by double digits. A good example is top tokens like Trump Coin, World Liberty Financial, Wormhole, Somnia, and Keeta.
Additionally, the layer-1 and layer-2 industries are highly saturated, with networks like Plasma, Ethereum (ETH), Solana, and BNB having the biggest market share in the sector. More networks by companies like Robinhood and Circle are also expected to come online soon.
The Monad price may also dump because of the tokenomics as insiders and team hold over 50% of the tokens, with the public sale accounting for less than 8%.
