Traders were excited about the price potential of Ethereum Classic (ETC) prior to its listing on cryptocurrency exchange Coinbase.
Most traders bought the coin at what they consider to be low with the hope of selling it after the listing as they expect the price to pump.
Things worked out as expected, at least for a brief period of time. Since its listing four days ago, the cryptocurrency has shed more than 30% of its value against the US Dollars.
Two pumps before listing
Before the coin listing on August 7, ETC recorded gains on two different occasions. The first price pump started on June 11th after Coinbase announced to the public that they would be adding Ethereum Classic to their platform.
The currency reacted positively by surging from $12.19 to $16.40 over the next 48 hours, representing a 34% increase in value.
The second price surge started on August 3rd, following another announcement from Coinbase which stated that ETC trading would finally go live on August 7th.
From that day to the listing day, ETC surged by more than 50%, reaching a high of $21.25, according to data from XBT.net.
Cryptocurrencies are used to recording massive gains following news of listing on cryptocurrency exchanges.
This is because traders and investors would regard an asset as undervalued when taking into account the potential for a large cash flow increase that may come with the listing.
The cryptocurrency would undergo a period of volatility when the price rises to an extent where it is no longer considered as undervalued, subsequently leading to a market sell-off. Ethereum Classic followed the same path as the others.
After it reached a peak of $21.25, the price has fallen more than 30% versus the US dollar and is currently trading at $14.8 per coin.
Ethereum Classic also had other positive news, with the listing on cryptocurrency trading app Robinhood and USD support on Bittrex still not helping the price.
ETC price reacted negatively to the SEC news after the agency revealed that it is postponing its Bitcoin ETF decision.
The entire cryptocurrency market reacted negatively to the news as there was a massive sell-off. The ETC price has been trading sideways since its plunge a few days ago.
Ethereum Classic is a fork of Ethereum and was created in 2016 following the divisive collapse of The DAO.
Even though ETC is not as prominent as its sister, Ethereum, it has been making a lot of waves in the cryptocurrency world recently, with investors still confident of its long-term potential.