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 is likely to 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 worldwide and utilize 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 it will now utilize its 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.”
The Humanity Protocol price has surged following its airdrop, as investors believe in its utility in industries such as artificial intelligence and security. It has also experienced a surge in popularity after being listed on some of the most prominent exchanges in the industry, including Bybit, Bitget, and Bithumb, one of the top cryptocurrency exchanges in South Korea.
READ MORE: Dogecoin Price Prediction: Classical Pattern Points to a DOGE Surge
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 subsides and investors adapt to the new normal. The chart below shows that 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 notable example of this is Pi Network, whose price surged after the highly anticipated mainnet launch and then plummeted 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. Additionally, many of these holders have witnessed numerous cryptocurrencies surge in their early days, only to plunge afterward.
Finally, there are concerns about future dilution since the 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.
READ MORE: XRP Price Prediction: Top 3 Reasons Ripple is About to Rally 50%
