ICON (ICX) cryptocurrency makes a sporadic increase, the company blames allocation of tokens while reddit users demand answers.
Active Reddit users who have been following ICX recently will not fail to notice the unexpected jump-start taking place in ICON’s circulating supply. A couple of weeks ago, the coin circulated to about 400 million, but it escalated to a whopping 18% to reach 473 million in just a single day and the company has not offered a single explanation for such quantum leap.
Many of the individuals studding ICX including Reddit users have wondered about what must have been the cause. Some have been coming up with conspiracy theories, while others have been asking if it was a planned airdrop. A few suggested the spike was fuelled by a token swap, or maybe someone from ICON had freed up a large number of tokens.
From the ICON white paper, the ICX token was allocated at 50% for token sale, 14% for foundation, 10% for community groups and strategic partners, 10% for team, advisors and early contributors, and 16% for the reserve.
The mystery exposed
In a bid to solve the mystery of the unexpected rise in the circulating supply of ICX, theicon.ist made contacts to their inside source at ICONLOOP, and were able to find out that the sudden ripple was connected to the distribution of tokens to groups (2, 3 and 4).
ICONLOOP explained in an email delivered to theicon.ist that;
“Number 2 was distributed to cover operational costs while Number 3 and 4 were assigned individually on the basis of a contract. This was the reason why there seemed to be sporadic increases in circulation supply”.
Reddit Users Demand Transparency From ICON Team
A lot of Reddit users were not comfortable with the news about the unexpected spike of ICX circulating supply and a large number of them questioned the company, demanding that a number of queries be addressed. A certain user interrogated the contributors who have been listed as promoters and advisors on the platform claiming that they do not have any track record.
The user continued to throw a lot of questions at them, wanting to find out what happened to the $45 million that was raised by ICONLOOP during it’s ICO, how they planned to go ahead and jettison the circulating coins without killing the prices of ICX, and where the $5 million buy back that had been earlier announced by the company disappeared to.