Within periods of market euphoria, some coins rise only because of market excitement. Usually, there is no technological progress or nor are there popular use-cases behind it. Australian journalist Alex Saunders supposes he has already found such a coin in the ongoing rally.
No apps, no devs, no community
Alex Saunders, Australian blockchain journalist and author of Nuggets News informational resource, criticized the last rally of Tezos (XTZ). He didn't find a significant technological or economic basis for the double-digit price surge demonstrated by this token.
Despite this, Tezos entered the top-10 of cryptocurrencies in terms of market capitalization as its whole supply has now been at more than $1,8B. Regardless, Mr. Saunders doesn't think it will last long.
According to him, Tezos (XTZ) failed to build a strong community around the project and to hire top-tier devs. Thus, it is not able to address the technological targets of the project.
It is going to fall hard
Tezos (XTZ) popularity in staking ecosystems is another disadvantage for Mr. Saunders. He supposes that the supply of staking coins is subject to manipulation.
Thus, the price of Tezos (XTZ) will experience a dramatic fall, Mr. Saunders predicts. This fall may occur 'once the euphoria ends'.
At printing time, Tezos is defending its 10th position with a market capitalization of $1,72 and token price of $2,49.
Dan Burgin
U.Today Editorial Team
