Internet Computer (ICP) was one of the most exciting projects in the cryptocurrency world when it launched in May 2021, widely promoted as "the new generation of the Internet." However, behind these promises were dark secrets and hints that there was more than just an innovative project. Let's delve into the details and uncover how the story began and where everything went wrong.
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1. The big promise: a decentralized Internet
At first, ICP was considered an innovative project based on an amazing idea: transforming the Internet into a completely decentralized system, away from the control of giants like Google, Amazon, and Microsoft. ICP was announced as a new network that would use advanced technology to create a "world computer" that would allow developers to create and distribute applications on the Internet without the need for traditional servers or cloud services.
This promise attracted many investors looking for an opportunity to make money with innovative and promising technology.
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2. The rapid rise: the initial boom
When ICP was launched in May 2021, the coin experienced a massive increase in value. On the day of its launch, the price of ICP reached $700, making it one of the most valuable cryptocurrencies at that time.
This explosive growth attracted the attention of investors and created unprecedented excitement, leading many to believe this was the "golden opportunity" to achieve enormous profits.
But the reality was very different.
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3. Liquidity manipulation: the trap for small investors
While most small investors were buying ICP expecting big profits, the founding team and large investors had already acquired their stakes long before, at very low prices, prior to the public launch. This meant they owned the majority of the coins while prices were rising.
With the increase in demand for ICP, the founding team and large investors began to gradually sell their stakes, which caused a sharp drop in price.
The secret: after selling large amounts of coins, liquidity was controlled by big players, making it difficult for small investors to exit the market when the price began to fall.
The evidence: when the price fell from $700 to less than $50 in less than a month, it became clear that large investors had made huge profits, leaving small investors facing enormous losses.
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4. Misleading promotion: selling an illusion
Although ICP was presented as a highly innovative project, there was a lot of exaggeration in its promotion.
The initial advertising campaigns portrayed ICP as a technology that would revolutionize the Internet, leading many small investors to rush to buy based on unsupported promises.
The secret: the campaigns focused on highlighting ICP's technology and its promises to decentralize the Internet, but did not mention the technical and economic challenges that threatened its long-term sustainability.
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5. Liquidity control: how did it affect the market?
Liquidity was one of the biggest problems in ICP. Despite its huge initial rise, liquidity on the platforms was very low, making it difficult for small investors to sell their coins when prices began to fall.
The secret: Dfinity, the founding team, controlled almost entirely the liquidity of ICP, managing the flow of buying and selling. This allowed them to manage prices to maintain their value in the short term, while small investors could not act easily.
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6. The rapid collapse: enormous losses for investors
Less than a month after the launch, the price of ICP plummeted dramatically. From $700 it fell to less than $50, causing huge losses for investors who had entered the market early.
The secret: as soon as large investors began to sell their large stakes, the price plummeted dramatically. Many small investors faced devastating losses, while the founding team and large investors had already exited the market with huge profits.
The most shocking thing is that those who invested $700 in ICP when the price was at its peak ended up with barely $5 of their investment. This clearly demonstrates the magnitude of the collapse and how much small investors who arrived late to the market suffered.
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Conclusion:
Internet Computer (ICP) is a clear example of how the enthusiasm of new investors and exaggerated marketing can be exploited to attract money, while the founding team and large investors position themselves to benefit, leaving small investors with significant losses.
Although ICP could be an innovative project, the tactics used in its launch and promotion make it an example of how a market can be manipulated and unsuspecting investors trapped.
Before investing in any cryptocurrency, make sure to thoroughly research its background and look for signs of liquidity manipulation or misleading promotion.
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