GNON, one of the cult status AI-inspired tokens, has erased 95% of its value. Instead of a true belief project, even one of the founders liquidated GNON.
Numogram (GNON) had a 95% drawdown, despite its positioning as a ‘neo religion’ token. GNON joined the AI-inspired family of tokens, similar to Token Terminal’s tickers. However, GNON also saw promotion from crypto influencers, further inflating its influence.
GNON peaked near $0.20 a little more than a week ago, during a peak in AI-themed activity and true believer hype. Within just days, GNON was back to $0.008, erasing more than 95% of its value and with no signs of recovery.
The current GNON crash looks less than a normal rollover of memes, and more like a capitulation and loss of faith in the project. GNON also marketed itself as a movement, trying to ride on the coattails of irrational holders like POPCAT, WIF, SPX and more, but only lasted less than 10 days before behaving like a cabal coin.
In its meteoric rise in the past week, GNON received mentions from Ansem, quickly gaining mindshare. However, even Ansem seems to give up on the token, stating he ended up ‘hoodwinked’. True believer tokens rely on the community not selling, but GNON is now down to a couple of whales running small wallet clusters.
GNON became a leader after GOAT buyers rolled over, seeking for the next big AI trend. However, this choice turned out to be less than ideal. GOAT had a smaller drawdown from its peak of $0.85, trading at around $0.59.
GNON creator switches to SOL
The recent rally of SOL above $170 caused some meme token holders to realize profits and switch to the more liquid asset.
The creator of GNON, known as @lumpenspace, has recently liquidated GNON holdings worth $400K in SOL. The transactions originated from a known public address identified by on-chain investigators. The developer’s actions follow previous selling from whales, though this time, they extended the GNON losses and sparked deeper doubts about the project’s future.
The crash was exacerbated by the decision to sell 20M GNON in a single swap transaction, causing a steeper decline. Some community members noted @lumpenspace may have sold in a rage, suggesting the rest of the community was behaving like a cabal and manipulating the token. The project’s developer also acted like a KOL and an idea leader, so the decision to abandon the project hurt GNON even more.
In addition to the liquidation, GNON also saw anomalous activity as traders tried to make sense of the crash. Some earlier whales that accumulated GNON sold at a loss at the last moment. Liquidity in one of the most active GNON pairs was drained, leaving only $915K in the pool.
After the sale and the latest dip of GNON in the past 24 hours, X users called out @lumpenspace for selling, leading to a blocking spree. The token’s crash may threaten its meme status, as no other major community token has performed a similar rug pull.
After the sale, the token’s founder account is locked, with all previous messages protected. GNON has caused deep losses for its community, which rolled over from other tokens expecting to repeat the success of GOAT or SPX6900 (SPX). Rug pulls are not unusual in meme token projects, though GNON aimed for a community-driven ethos, copying previous cult tokens.
There is a very thin hope for GNON to return as a community-owned asset, recovering from its recent lows. However, GNON still has accrued a list of significant wallets with more than 1.5% of the supply, and the price can still drop by another 99% from its current position. A community takeover will still require a new injection of liquidity and faith that the project will not be sniped and sold again.
Talk of a reversal or a bounce from the lows has appeared, but others have called GNON a dead project, due to the disappearance of its creator. Meme brands like PEPE, NEIRO, and others have rallied again after their developers sold, but the fast trajectory of GNON may dampen the meme’s appeal and turn traders back to similar communities.
Source: https://www.cryptopolitan.com/numogram-gnon-erases-value-founder-sells/