Paycoin (XPY) may have just started its final descent, falling by as much as 50% and briefly breaching the $1.00 mark.
Traded volume over the weekend had been light, but shot up once XPY breached 0.08 BTC ($1.65). The equivalent of $300,000 has now changed hands during the past 24 hours, the fifth highest among cryptocurrencies. The figure resembles those of busier periods last month, but with the XPY price a fraction of what it once was, actual XPY volume is significantly higher.
The coin has since recovered back to $1.40, but having just breached new lows, a renewed stretch of selling may already be under way.
XPY’s dollar value had, at least partially, been tracking the rest of the market during the past two weeks. Its value surged when bitcoin (BTC) jumped back above $300, but fell when BTC reversed. Today’s steep losses, however, contrast with a broader market whose prices, on average, remain relatively unchanged.
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With a total valuation of $17.7 million, Paycoin is still hanging on to the fifth spot in market cap, just ahead of Stellar and Dogecoin.
The drop comes around the same time as PayBase’s “Paycoin Honor Program” is scheduled to commence. GAW CEO Josh Garza recently announced that the program, which was to officially launch yesterday, “will honor every Paycoin at $20.”
XPY has lost as much as 90% of its value since peaking in late December.
What makes its current trading dynamic interesting is its presence on multiple exchanges, one of which is controlled by GAW itself. The vast majority of its traded volume takes place on Cryptsy, which we assume resides outside of GAW control. Thus, attempts to fix the price on one venue face an uphill battle from the overwhelming majority of traders. The GAW-controlled venue has to then decide whether to let prices float freely or drive a wedge between itself and the rest of the market.