TenX saw a spectacular fall in price this morning, down from a high of $86 to now trade at $1.16 at the time of writing according to data from CoinMarketCap.
It’s not very clear what happened, but apparently a small exchange, HitBTC, was offering TenX IOUs before the token sale even ended with traders there handling around $70,000 in total volume giving it a high price of $86.
The token was then listed on Bittrex, which handled considerably more volume at around $16 million, sending the price down to near $1.
The crash appears to be due to lack of liquidity on HitBTC for this particular pair, with the return of liquidity seemingly giving it a more correct market price today.
That market price is around double the ICO price, which went for approximately $0.50 cents per token, with TenX raising $67 million worth of ethereum in minutes.
The start-up has apparently been selling their eth recently, with their smart contract address showing funds moving during the past few days.
It is not clear whether they are moving them to open exchanges or off-the-counter, but TenX has apparently confirmed they are selling around 30% of their eth, potentially exerting downwards pressure on ethereum’s price recently.
The start-up aims to further develop their crypto debit card, while also trying to apply for a banking license, but it’s not clear whether there has been any developments on the banking license front.
The debit card has already launched, allowing you to pay with eth or btc anywhere Visa or Mastercard is accepted as TenX simply converts it to fiat on the fly by using Kraken and Poloniex.
They received seed funding by Fenbushi Capital, but on their page they listed Vitalik Buterin himself as an investor without making it very clear Buterin did not personally invest in the start-up.
Moreover, they did not provide any information on the number of users, projected revenue, or other hard data aspects you’d expect in any venture funding pitch, but they’re far from alone in failing to do so in the ICO space.