Successful Mainnet Launch Doesn’t Help Zilliqa (ZIL) Improve Crypto Rankings
A news trader is a trader or investor who makes decisions based on news announcements. Breaking news, economic reports, and other events can have a short-lived effect on stocks, bonds, and other securities. Typically, in the crypto market, news trading is very popular.
The adage “buy the rumor, sell the news” means that rumors have one effect on a security's price and news can have an opposite effect. For this reason, news traders may focus on trading in the time leading up to the news or when the market is reacting to the news.
What happens is that a coin gets speculated on hard based on positive rumors, and by the time an event occurs traders are burned out, the price is high (due to the upcoming event being “priced in” and speculated on), and the market is full of people waiting to “sell the news.”
This leads to a market where even very big news can end up being disappointing, and where people are waiting to sell regardless of what the news is. If there are more sellers than buyers, then prices tend to go down not up.
Zilliqa, during the month of January, was a case study on this topic. Following 18 months of intense work, their Mainnet has finally launched. The original aim of the project was to solve the vulnerabilities in the Ethereum network, using Scilla programming language. As the project evolved, it gained multiple partners, advisers, and a community, reaching around the entire work.
The features of the mainnet that make it strikingly different from others out there included:
- A Practical Byzantine Fault Tolerance (PDFT) blockchain
- Safe smart contracts through the Scilla programming language
- Low variance in block rewards
However, the hype followed the same trajectory of Tron mainnet launch. For a month, Zilliqa (ZIL) tokens went down -14.42% from $0.02029 for coin. For 100 days ZIL is down -51.51% from $0.03581.
The highest price was $0.0179124165 and the lowest of $0.017073342 for February 9-10. Tron also disappointed after their successful launch which had the entire crypto ecosystem excited.