We’ve seen some pretty steep drops in many of the “national” cryptocurrencies such as Auroracoin and those inspired by it. All predictably come pre-mined with an “Airdrop” and a value almost guaranteed to fall. Many skyrocketed in value as they were celebrated upon addition to coinmarketcap.com. These include Spaincoin, Aphrodite, Greececoin, SilliconValleyCoin and others.
Last week, Isracoin burst onto the scene. It had actually ranked 4th in market cap at $123 million, an impressive feat for any coin even if trading volume isn’t exceptionally high. It traded for an equivalent of $0.26 per coin. Today, it’s worth $0.085, a loss of 2/3 of its value.
Interestingly, due to an anomaly on coinmarketcap.com, its performance would appear far worse at face value. The method for calculating total coin supply has changed, an issue which has dropped Ripple into 3rd place. Isracoin is now technically in 68th and today is calculated to be valued at 99.9% less than what is was 3 days ago. The figure should sound familiar from the early days of Auroracoin, like the 99.99% drop in the Icelandic krona versus gold for which Auroracoin was coming to liberate us.
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Admittedly, it’s impossible to keep track of every single coin out there. We’ve gotten to a point where a coin’s lifespan can mimic that of some radioactive elements which exist for mere milliseconds. It’s entirely possible that we have coins launching and percentage-wise, making even more extreme movements. However, this is a rare instance where we’ve seen such a combination of decent trading volume during the pump (over $100k worth) and a spectacular fall in so short a time.
Many of the other national coins ostensibly exist to liberate a country from its own struggling currency, internal financial crises or economic woes. Israel’s economy is doing relatively well and its currency, the shekel, has been one of the world’s best performers over the past couple of years.
Rather, the coin comes to combat what is perceived as a restrictive and unfair financial system, “with about 20 families controlling most of the industry and 5 banks controlling a whopping 93% of banking assets in the country.” This indeed partially explains the relative popularity of Bitcoin in Israel.