Is Chingari Following Polygon’s Footsteps?
One of India’s top crypto prospects, the GARI Network, is enduring a rough ride at the moment as it struggles to regain momentum after an epic crash in value.
Earlier this month the GARI token was plodding along nicely, mirroring a wider crypto market that’s consistently been moving sideways in recent weeks. That was until July 4, when the price of GARI suddenly crashed by 87% – falling to around 10 cents a token, far, far below an all time high of value of 98 cents recorded back in February.
As is traditionally the case when a cryptocurrency experiences such a rapid and violent drop, the internet went wild with accusations of “scams”, “hacks” and “rugpulls” flying around on Twitter and elsewhere.
However, it quickly transpired that the price drop was due to a whale selling more than $2 million worth of GARI tokens on the KuCoin exchange, driving down the token price at a time when exchanges are struggling for liquidity. Solscan shows that holdings in the top three GARI wallets, which are owned by the GARI Network’s treasury and team, remain intact, clearing the company of any wrongdoing.
Although GARI is soldiering on, the price situation hasn’t improved, with one GARI trading at around 10 cents more than a week after the dump took place.
With Chingari’s team now in the clear, what looked like a disaster could actually prove to be one hell of an opportunity for astute crypto buyers. Those who’re on the lookout for that winning combination of genuine utility and bargain-basement prices could hardly find a more suitable candidate.
In many ways, GARI’s sudden price drop mirrors an incident that occurred to what has since become one of the hottest cryptocurrency projects of all – Polygon, the popular Ethereum scaling solution whose MATIC token is currently the world’s 16th most valuable cryptocurrency by market cap.
Getting there wasn’t easy for Polygon, which began life as the MATIC Network in 2017 and launched the MATIC token in early 2019. The project was just one of many competing Ethereum scaling solutions to launch around that time (in a bear market). In the early days it struggled to gain much traction. Over time, the project began to attract interest from developers, only for disaster to strike in October 2019 when the price of MATIC suddenly dropped by 75% in the space of a few minutes.
MATIC was the victim of market manipulation, with investors dumping millions of tokens on exchanges in an attempt to make a quick profit at a time when the token was making steady gains. Similar to GARI, Twitter came alive with false accusations that the team behind Polygon was responsible for the sale. For a number of days, Polygon teetered on the edge of the abyss, with developers and investors alike looking to bail out on the nascent project.
Yet, Polygon was eventually able to convince the community it wasn’t at fault, while knuckling down and continuing to build out its solution. Slowly but surely, confidence returned and the price of MATIC rapidly as the consumers realized it could still live up to its potential.
Fast-forward three years and today Polygon is viewed as one of the biggest crypto success stories around. Not only does it help Ethereum to scale, but it’s also one of the most popular platforms for building Ethereum-compatible blockchains, while the MATIC token has consistently outperformed much of the rest of the crypto market. Building on this success, Polygon is making strides all over the crypto space, including in NFTs and Play-to-Earn games.
Polygon rode out the storm by focusing on its product, technology and innovation and delivering on its promises. Its efforts have been richly rewarded, with MATIC ultimately hitting an all-time high of $2.92 in December 2021, having traded as low as two cents at the time of its earlier crash.
The stunning success of Polygon will reassure Chingari that GARI can eventually recover and grow to achieve new heights too. What is clear is that GARI has all the ingredients necessary to regain its momentum. Indeed, it even has some advantages Polygon didn’t have – it has very few competitors, a potential user base of millions, and genuine utility that sets it apart from most other cryptos. Like Polygon, all the team has to do is keep delivering on its mission to build a new “create to earn” economy, and better days will surely come.
Image source: TipRanks
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Bitcoinist, @Khareem Sudlow