Although there is plenty of reason to be excited about Tezos, the currency’s price is not showing the positive momentum. More specifically, the Tezos price has declined by over 6% in the past 24 hours, erasing some of the strong gains noted earlier this week. The project’s main net launch may effectively trigger a sell-off if this trend keeps up or much longer.
Tezos Price is on the Decline
This past week has been rather interesting as far as the Tezos price is concerned. More specifically, the announcement regarding the project’s main net launch has been well-received. Solid gains were noted in very quick succession, albeit everyone knew that trend was not sustainable for very long.
This has resulted in a 6.15% decline over the past 24 hours. It is not the biggest decline this altcoin has seen so far, yet it shows the excitement regarding the main net launch is evaporating at an alarming rate. Remaining above a value of $1.5 may be a far bigger challenge than initially assumed.
It seems some interesting developments are taking place regarding this main net. Kraken, one of the bigger exchanges, has made it clear the firm has no plans to support XTZ trading anytime soon. Unlike some other exchanges, the company isn’t interested in jumping on any hype bandwagons in this regard. That also means no additional fiat currency gateways for Tezos will be added in the near future.
While we are always open to adding new digital assets to our exchange, we do not generally confirm in advance which ones will be listed. The best way to get details regarding which assets are being listed on Kraken is to read our email newsletters and to follow our blog.
— Kraken Support (@krakensupport) September 16, 2018
As is always the case when a cryptocurrency launches its main net, one has to wonder how the launch will go. Examples set by other tokens migrating to their own blockchain in the past 18 months show a lot of unforeseen things tend to happen at such a crucial stage. If Tezos falls in the same category, some initial network instability may occur. For now, there is no point in speculating on the launch, but it is something to keep in mind at all times.
In more positive news, the baking of Tezos seems to be firing on all cylinders. Rewards for the most recent cycles have successfully been distributed, further confirming the underpinning technology is working as expected. With the main net launching soon, a lot of holders will look for ways to increase their holdings accordingly. Baking seems to be a viable option in this regard.
— TeZetetic (@TeZetetic) September 16, 2018
Whether or not the Tezos price can recover some of this lost value, is difficult to predict. One unwritten rule in cryptocurrency documents how announcements create hype, whereas actual launches usually result in value decreases. It will be interesting to see if XTZ can escape this cycle. The final result will become apparent in the next 36 to 48 hours.