Is IRYS a Scam? Crashes 22% After Listing. Community Unhappy with Airdrop

IRYS scam allegations are swirling after the token’s shocking 22% price crash following its mainnet launch and major exchange listings. What went wrong?

The crypto community is asking tough questions. IRYS, the native token of a new Layer-1 data chain, tanked hard on November 25. This happened right after it went live on mainnet and landed a Coinbase listing.

Exchange listings often boost prices – just not now.

Traders stared at their screens – IRYS crashed from $0.037 to $0.027 overnight. The sell-off was brutal. Volume spiked, but all of it pointed in one direction: down.

So what happened? Was this coordinated dumping? Or something else entirely?

The Airdrop Nobody Asked For

The mainnet launch came with an airdrop. Sounds good, right? Free tokens for early supporters.

But here’s the problem. The airdrop created massive selling pressure. Genesis NFT holders got tokens automatically. So did testnet users, Discord members, and “vibe coders” (whatever that means).

All these people received unlocked tokens at once. Many of them sold immediately. Classic airdrop farming behavior.

The result? Price discovery turned into a fire sale.

Community members are furious. Some are calling it poor tokenomics. Others are throwing around the word scam. The sentiment on social media has turned sharply negative.

Multiple Listings, Same Result

IRYS didn’t just list on Coinbase. KuCoin, Bitget, and MEXC also added support. More exchanges mean more liquidity. That’s usually a good thing.

But liquidity cuts both ways. It makes it easier to sell large amounts without completely crashing the price. And that’s exactly what happened here.

The timing raises eyebrows. Major listings combined with a massive token unlock. Who benefits from this setup? Certainly not the retail buyers who purchased during the initial pump.

Critics point out that the team must have known this would happen. They controlled the tokenomics. They chose the airdrop distribution. They coordinated the listings.

Was this incompetence or intention? That’s the question dividing the community right now.

Technical Analysis Shows Weakness

The charts don’t lie. IRYS is showing clear bearish signals. The MACD indicator sits below the signal line. Momentum is fading fast. For traders trying to time the market, understanding crypto tops and bottoms is crucial in situations like this.

Price discovery is still happening. Yet lacking solid demand, it might hit fresh lows. A few experts expect a fall toward $0.020 – or even below.

If bulls want power, IRYS must retake the $0.030 level – yet that’s doubtful right now due to how markets are acting.

Volume remains elevated, but it’s mostly selling volume. Until that changes, the downtrend will likely continue.

Is IRYS Actually a Scam?

Here’s where things get tricky. Calling something a scam requires proof of fraud. Right now, there’s no evidence of that.

The project delivered a working mainnet. The exchanges are legitimate. The airdrop happened as announced.

But bad tokenomics can feel like a scam to people who lost money. And IRYS definitely mismanaged its token distribution.

The team spent two years building this project. Then they bungled the launch with poor planning. This is either cluelessness – or a sneaky move by those in the know.

Unless the team opens up, doubts won’t stop spreading. What’s behind dumping a huge batch of tokens all at once? Which wallets got the biggest chunks? From which exchanges did the heavy selling emerge?

These are fair questions that deserve answers.

What Happens Next?

The IRYS team needs to address community concerns quickly. Silence will only fuel speculation about an IRYS scam.

They should release detailed tokenomics data. Show who holds what. Explain the distribution schedule. Prove that the team isn’t dumping on retail investors.

For traders, the situation is clear. Stay away until the price stabilizes. Wait for genuine buying pressure to return. Don’t try to catch a falling knife.

Some recovery is possible if market sentiment shifts. But that requires trust. And right now, the IRYS community is running out of that.

The coming weeks will determine whether IRYS can recover from this disastrous launch. Or whether it becomes another cautionary tale in crypto.

At the time of writing this article, IRYS is trading at approximately $0.02677.

Why did IRYS crash after getting listed on Coinbase?

The crash happened because of massive airdrop selling pressure. Genesis NFT holders and early community members received unlocked tokens at launch. Many sold immediately, overwhelming buyer demand despite the positive news of exchange listings.

Is IRYS actually a scam or just bad tokenomics?

There’s no concrete evidence of fraud. The mainnet works and listings are real. However, the token distribution was poorly planned. Whether this was intentional or incompetent management remains unclear. The lack of transparency from the team isn’t helping their case.

Can IRYS price recover from this crash?

Recovery is possible but requires strong buying pressure and restored community trust. The token needs to reclaim the $0.030 resistance level. Right now, technical indicators show continued weakness. Most analysts suggest waiting for clear reversal signals before buying.

What was the IRYS airdrop controversy about?

The team distributed tokens to NFT holders, testnet users, and Discord members all at once. This created instant selling pressure at launch. Many community members feel the team should have locked tokens or used a vesting schedule instead of allowing immediate dumps.

Should I invest in IRYS now that it’s crashed?

It really comes down to how much risk you’re okay with. Right now, the price may seem cheap, yet things could still get worse. Hold off until there’s some steady movement upward instead. Always keep in mind – you shouldn’t put in cash you’d struggle without, particularly when markets are shaky like today.

Where can I buy IRYS token?

IRYS is currently listed on Coinbase, plus KuCoin, along with Bitget, also MEXC. Still, with prices jumping around and folks worried, maybe hold off – wait to hear straight from the team before buying.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and risky. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.