Internet Computer (ICP) was one of the most exciting projects in the cryptocurrency world at its launch in May 2021, heavily promoted as the "next generation of the internet." But behind these promises were serious secrets and hidden aspects indicating that there was more than just an innovative project. Let's dive into the details and uncover how the story began and where things went wrong.
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1. The big promise: The decentralized internet
Initially, ICP was considered an innovative project built on an amazing idea aimed at transforming the internet into a completely decentralized system, free from the current dominance of companies like Google, Amazon, and Microsoft. ICP was announced as a new network using advanced technology to create a "World Computer" that allows developers to create and distribute applications on the internet without the need for traditional servers or cloud services.
That promise was attractive to many investors who were looking for a new opportunity to profit from an innovative and promising technology.
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2. The rapid rise: The initial boom
When ICP was launched in May 2021, the currency witnessed a massive rise in its value. On the launch day, the price of ICP reached $700, making it one of the highest valued cryptocurrencies at that time. This huge increase attracted the attention of investors and created unprecedented excitement, leading many people to believe that this was the "golden opportunity" to achieve huge returns.
But the reality was very different.
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3. Liquidity manipulation: Pulling the rug out from under small investors
While most small investors were buying ICP at this stage hoping to achieve huge profits, the founding team and large investors had entered the project at a very early stage, where they had the opportunity to acquire the currency at very low prices before public trading began. This meant they owned the majority of the currency while the price was still rising.
As demand for ICP increased, the founding team and large investors began to gradually sell their shares, leading to a significant drop in price.
The secret: After massive amounts of the currency were sold by these investors, liquidity was controlled by the major parties, making it impossible for small investors to exit the market easily when the price began to decline.
Evidence: When the price began to drop from the $700 level to below $50 in less than a month, it became clear that most of these large investors had made huge profits while leaving small investors facing significant losses.
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4. Misleading promotion: Selling the illusion
Although ICP was considered a highly innovative project, there was a lot of exaggeration in its promotion. The initial advertisements portrayed ICP as something that would radically change the internet, driving small investors to rush to buy the currency based on unsupported promises.
The secret: The advertisements heavily focused on ICP's technology and its promises of transforming into a decentralized internet, while failing to highlight the fact that the project faced numerous technical and economic challenges that could affect its long-term sustainability.
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5. Liquidity control: How did it affect the market?
Liquidity was one of the biggest issues with ICP. Despite the huge rise in its value initially, the liquidity on the platforms was extremely low, making it difficult for small investors to sell their coins when the price began to decline.
The secret: Dfinity, the founding team, had almost complete control over the liquidity in ICP, allowing them to manipulate buying and selling movements. This enabled them to manage prices in a way that maintained their value in the short term while small investors were unable to act easily.
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6. The rapid collapse: Massive losses for investors
In less than a month after the launch, the price of ICP began to collapse significantly. From a level of $700, the price fell to below $50, causing massive losses for investors who entered the market initially.
The secret: Once the large investors started selling their massive shares, the price dramatically declined. This left many small investors facing severe losses, while the founding team and large investors had already exited the market making huge profits.
What’s even more shocking is that those who invested in ICP at $700 when the price peaked now own only the equivalent of $5 from their investments. This clearly illustrates the magnitude of the major collapse that the currency experienced, and how severe the losses were for small investors who entered the market late.
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Conclusion:
Internet Computer (ICP) is a glaring example of how the excitement of new investors and exaggerated promotions were exploited to attract funds, while the founding team and large investors remained in a position to profit while leaving small investors at a loss. In the end, ICP may be an innovative project, but the tactics used in its marketing and launch made it an example of how to pull the rug out from under small investors and entangle them in significant losses.
Before investing in any cryptocurrency, make sure to understand its background well, and look for indicators that may suggest liquidity manipulation or misleading promotion.
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