Team Behind Foin Token Scheme Explains Catastrophic Price Drop

The Foin project - which is behind the eponymous token that sunk following its supposed unlocking period at the beginning of January - has released an official explanation of the token's tanking after the purported price pump.

Cointelegraph reported in an investigation on Dec. 30, 2019 that we had found a trail of suspicious movements in Foin's price history, as well as a web of suspect business relationships associated with the coin's development.

As revealed by our investigation, there are multiple entities associated with Foin, like the Swiss-registered Foin Foundation, crypto payments firm and wallet provider FoPay, and AliExchange.

On Jan. 10, Foin made its first official announcement of the year, explaining why the price dropped.

In December, FoPay had acquired Estonia-based digital currency trading platform AliExchange for 1 million Foin tokens.

Since that announcement, Foin price surged even higher to around $3,640 on Dec. 23, representing a near 70% month-over-month price increase.

It is worth noting that Foin also named the bearish crypto market as one of the key factors of the token price slump, elaborating that altcoins' value is primarily tied to the price of Bitcoin and Ether.

Foin price should have followed the upturn in BTC price but has continued trending down.

"On January 3rd, 2020, after all, coins were fully distributed, the exchanges where FOIN was listed were flooded with people trying to sell FOIN. For example, one of the exchanges where FOIN is listed, P2PB2B, has even had serious technical difficulties and had to perform a system upgrade due to the large number of people signing up and depositing FOIN in their platform."

The Foin team ostensibly intends to rescue its token price.