Humanity Protocol price went parabolic following its highly successful airdrop and token listings by top exchanges. The H token was trading at $0.09920 on Friday, up by over 403% in the last seven days, giving it a market capitalization of over $180 million. Let’s explore why the Humanity price will crash soon.
Why the Humanity Protocol Price is Surging
Humanity Protocol is a crypto project in the decentralized identity and verification industry. Its product aims to provide tools that let users prove their identities or attributes without revealing sensitive information.
Humanity Protocol’s goal is relatively similar to that of Worldcoin, the crypto project launched by Sam Altman. Worldcoin’s goal is to scan billions of users from around the world and then use this data for verification purposes.
Humanity Protocol has made major milestones in the past. For example, it recently acquired Moongate, a company that powers Web3 events globally, meaning that it will now start using ots technology for this verification. Moongate’s CEO said:
“Humanity Protocol is laying the foundation for a future where identity is decentralized, privacy-preserving, and human-first. This acquisition brings that vision into the real world, enabling people to use their Human ID for access, rewards.”
Humanity Protocol price has surged after its airdrop because investors believe in its utility in industries like artificial intelligence and security. It has also jumped after being listed by some of the most popular exchanges in the industry like Bybit, Bitget, and Bithumb, one of the top cryptocurrency exchanges in South Korea.
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Why the H Crypto Price May Crash Soon
There are three main reasons why the Humanity Protocol price will crash soon. First, it will drop as the post exchange listing hype falls and investors embrace the new normal. The chart below shows that the social dominance has plunged in the past few days.
Second, it is common for newly listed assets to surge and then pull back as the momentum wanes. A good example of this is Pi Network, whose price surged after the much-awaited mainnet launch and then plunged a few weeks later. It has now retreated from $3 to below $0.50.
Third, it is likely that many insiders and earlier investors will start to sell their tokens to book profits. Besides, most of these holders have seen many cryptocurrencies surge in their early days and then plunge afterwards.
Finally, there are concerns about future dilution since Humanity Protocol token has a circulating supply of 1.82 billion tokens against a maximum supply of 10 billion. This means that millions of tokens will start being released in the next few months.
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