Zilliqa successfully launched its mainnet at the end of January, however, that success doesn't translate in its price. Is Zillaqa suffering from 'buy the rumor, sell the news'?
A cryptocurrency with the scaling problem well in mind, Zilliqa, has successfully launched its mainnet at the end of January.
Due to scaling issues in the Bitcoin and Ethereum blockchains, the team behind Zilliqa, led by Xinshu Dong, CEO, focus on using chain sharding in order to allow many transactions to be processed along the network, on a smaller scale.
Zilliqa was also very focused on security with this mainnet launch. The network was launched on a bootstrap phase, ensuring that it will be protected against attacks while hash power takes off. This bootstrap phase is scheduled to end during the month of March 2019.
However, the successful mainnet launch had no effect on its price. On the contrary, Zilliqa's price is still suffering from a downwards trend.
Zilliqa turns out to be a classic case for the 'buying the rumor, selling the news' topic.
Meaning that the so-called 'news traders' focussed on trading its coin, in the time leading up to the launch date.
By the time Zilliqa's mainnet launched, these traders already were showing signs of 'burn out', due to the previous anticipation of the mainnet launch, the event already being 'priced in' and speculated on, and the market being full of people who are now waiting to 'sell the news'.
This can create a market where even big news can end up being disappointing.
Zilliqa tokens were down -14.42% in the past 30 days, while the token is down -51.51% from $0.03581, in the past 100 days. The hype leading up to its mainnet launch, seemed to have followed the same trajectory of the Tron mainnet launch, which as well disappointed after their successful launch.
Zilliqa is currently trading at $0.016, down -0.70%, in the past 24 hours according to coinmarketcap.com.
The Zilliqa community is strong and hasn't lost faith in its coin, however, only time will tell if Zilliqa can recover to all-time-highs.