Berachain Sees 27% Price Drop Despite Recent Exchange Listings

Berachain’s BERA token has plummeted over 27% to trade around $5.99 as of the last check on Saturday. This steep decline comes despite the token’s recent listing on major centralized exchanges such as Crypto.com, MEXC, Upbit, and Bithumb.

Background and Launch

Berachain, founded by pseudonymous “Smokey,” officially launched on February 6 after over a year of anticipation. The project secured over $100 million in funding during this period. Berachain originated from the Bong Bears NFT (non-fungible token) collection, which was launched on August 26, 2021, on the Ethereum blockchain. This unique collection consists of 100 cannabis-themed bear NFTs and serves as the genesis project for the Berachain ecosystem.

Proof of Liquidity Consensus Model

Berachain introduced a Proof of Liquidity consensus model, differentiating it from traditional proof-of-stake blockchains. This innovative design has garnered attention, but also raised concerns among industry executives. Some critics argue that the project’s early funding strategy, which involved selling NFTs before pivoting to blockchain development, is a cause for concern.

Market Confidence and Liquidity-Driven Model

Despite its recent exchange listings, BERA’s price drop has raised questions about market confidence and the sustainability of its liquidity-driven model. As the project continues to gain traction, it remains to be seen whether it can overcome these concerns and establish a strong presence in the cryptocurrency market.

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Some industry executives have raised concerns over Berachain’s early funding strategy, which involved selling NFTs before pivoting to blockchain development.

Tips for Investors

When investing in cryptocurrencies like Berachain, it’s essential to consider the following:

  • Conduct thorough research on the project’s funding strategy and consensus model.
  • Evaluate market trends and sentiment before making investment decisions.
  • Diversify your portfolio to minimize risk.
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