What happened?
The newly launched Magic Newton $NEWT token made its debut on June 24th with listing at major exchanges like Coinbase and Binance. Initially, the token’s price increased by 30% from its listing price of $0.524 to an all-time high of $0.8337. However, it soon faced a dramatic 46% correction, trading at $0.4515 despite the buzz and support from big platforms.
Who does this affect?
This affects investors and traders who participated in the Token Generation Event (TGE) for $NEWT, as well as those tracking the performance of new crypto projects. Additionally, early community members and active participants in platforms like Kaito are affected due to the controversial token allocation strategy. The wider crypto market is also impacted, as $NEWT backed by PayPal Ventures and other notable investors garners significant attention.
Why does this matter?
This event matters because it highlights both the opportunities and risks involved in investing in new crypto tokens, especially those with high-profile backers. The initial surge and subsequent plunge in $NEWT’s value underscore the volatility present in the crypto market. Moreover, the token’s launch strategy involving simultaneous listings on tier-1 exchanges draws attention to innovative approaches in gaining visibility and liquidity in the competitive crypto landscape.