FunFair Analysis: 6 Billion Token Burn But Market Cap Drops

in #analysis • 7 years ago

Today, FunFair announced that it will burn 6 billion tokens (35% of total supply) on October 18, 2017 (Current supply is 17.17 billion). What is odd is the price action. Prior to the burn announcement, the price was hovering $0.023 which implied a $395 million market cap. Now, the price stands at around $0.03 but factoring in the 6 billion token burn (bringing the total supply to 11 billion tokens) implies a market cap on $330 million. In reality, the announcement has decreased the market value. It could be a situation of buy the rumour, sell the news but I believe burning 35%+ tokens should lift the price and market cap after next week's Bitcoin Gold fork.

Technically, FunFair had a bullish MACD cross as seen in the daily chart below. It's important to note that this cross is influenced by the massive pump all the way to $0.04 today so I would take this bullish signal with a grain of salt. Should the blue line continue to be above the orange line in the next few days, then that would solidify the bullish signal.



#crypto-news #trading #altcoin #ethereum
7 years ago in #analysis by
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