Notcoin (NOT), a cryptocurrency associated with the Telegram messaging app, has seen a dramatic drop in value exceeding 85% within a week of its official launch. Analysts believe this plunge is primarily due to a massive sell-off by investors who received Notcoin through an airdrop.

The Notcoin game, co-created by Open Builders founder Sasha Plotvinov, allows users to earn tokens within the Telegram app. This feature attracted significant interest, with an estimated 35 million people participating globally.

Sasha Plotvinov

Following a successful airdrop distributing nearly $1 billion worth of NOT tokens, Notcoin debuted on the Toncoin network. The token initially experienced a surge in popularity, reaching the eighth position in daily trading volume and exceeding $1.4 billion in total value within 24 hours.

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However, this enthusiasm was short-lived. Many investors, motivated by quick profits, sold their airdropped tokens, flooding the market and driving the price down. This trend was further amplified by the existence of an NFT voucher program during the mining phase, which essentially allowed players to speculate on the future value of the coin.

Telegram founder Pavel Durov initially fueled the project's growth with his public endorsement and expression of intent to hold his donated tokens until their value increased 100-fold.

Telegram CEO Pavel Durov

Despite facing price volatility, the Notcoin team is implementing various initiatives to improve user engagement and stabilize the token's value. These efforts include offering staking benefits and exclusive access to other launches for high-level users. Notably, the team emphasizes a user-friendly approach, allowing users to freely unstake their tokens without penalty.

The Notcoin team now faces the challenge of reversing a trend they might have inadvertently encouraged through the NFT voucher program. With a significant portion of holders likely focused on short-term gains, the team's success in reviving Notcoin's value remains to be seen.