- Insolar has announced that it is closing down following multiple exchange delistings
- The closure was announced after a week-long 218% rise in the token price
- The XNS price was a clear exit pump from the Insolar team, while loyal token holders lost out
The operators of Insolar, which was denounced as a scam and delisted from Binance last year, have been accused of conducting an exit pump after they shuttered the project just hours after the coin topped out following an unexpected 218% rise. Insolar has been in the doldrums ever since they destroyed community support last year by forcing holders into lengthy vesting periods, and this last act has been put down as an inside job to allow the team to leave with as much money as possible from the failed project.
Insolar Destroyed Community Trust
Insolar was founded in 2015 but its six year run has come to an end after their attempts to change the token metrics prior to the Insolar mainnet swap last year backfired drastically, leading to the death of the project. Token holders wanting to swap from the ERC-20 token to the native Insolar token were shocked to discover that a three-year vesting period had been forced on them and that the restructured tokenomics would have resulted in a ballooning token supply.
These concerns had been raised nine months prior by campaigners, but the Insolar team steadfastly stuck to their plans. Things took a turn for the worse for both holders and the team when Binance announced in September last year that it was going to delist the token due to these exact concerns. This has resulted in the token price dying a slow, undignified death ever since:
2021 The Year of Death For XNS
Insolar has endured a torrid 2021, with the only updates from their social media channels this year being delistings from other exchanges, first Biki on January 29 and then BitMax two days later. With only two remaining exchanges on which to trade the XNS token it was strange to see it rapidly appreciating in price, moving from $0.0055 on February 10 to $0.0175 by Tuesday. This was accompanied by a great deal of shilling on social media which had been absent for many months and had no fundamental rationale behind it.
Anyone convinced that this was a new dawn for Insolar was to be sorely mistaken however when the token suddenly dumped 86% in the space of 20 minutes at precisely 6am on Wednesday, just two hours before the Insolar project was officially closed:
Read more: https://t.co/8QgrAC5Q9a
— Insolar (@insolario) February 17, 2021
Exit Pump Almost Certain
In hindsight, the week-long shilling campaign was part of a clear exit pump strategy, one that allowed the Insolar team to recoup some of its losses, but that left some holders massively out of pocket:
I’m sure a lot of people lost funds, I lost $25k.@insolario team really back stabbed everyone & knew exactly what they were doing.
The team lead on it’s followers, pump & dump & decided to create a new company called https://t.co/meNIC9wUzO Where all the $XNS TECH WILL BE USED.
— Crypto_Raver (@RaverCrypto) February 17, 2021
$XNS rugged today, be careful. Sold long ago, faulty team and they don’t really care about their community’s question. Don’t waste 2021 on this one. $one $matic $fet $ocean $eth $btc $dot $xlm $xrt $geo $atom $algo $swrv pic.twitter.com/BztLpCDQn7
— N8V (@neightv7) February 17, 2021
It’s sad to see any project go under, especially one that has been going since 2015, but when the team decides to behave like that it’s no wonder that cryptocurrency is accused of being a haven for scam artists.