The launch of Doodles' $DOOD token generated significant excitement but ended in disappointment, resulting in considerable losses in market capitalization and NFT prices.
Launch of $DOOD and Its Consequences
On May 9, Doodles launched the $DOOD token via an anticipated airdrop, intending to distribute 10 billion tokens on the Solana platform, with 68% allocated to the community. This announcement ignited enthusiasm within the crypto community, and Doodles NFT sales spiked by 97% a day prior, surpassing $1.1 million.
Reasons Behind the Sharp Decline and Market Reaction
The day after the launch, the market cap of $DOOD fell from over $100 million to about $60 million. Similarly, the value of Doodles NFTs dropped from 3.5 ETH to under 1.5 ETH, marking a 60% decrease. Key factors contributing to this downturn included significant selling pressure and a lack of clear utility for the token, along with confusion stemming from the choice of Solana.
Future Prospects for Doodles
Despite the sharp decline, some supporters remain loyal to the project. The prospects for the future hinge on the team's ability to establish trust and clarify the intended utility of the token. Collaboration with established brands like McDonald's and Pharrell Williams highlights the brand strength of Doodles, and there are chances for recovery and growth if the project can offer tangible and clear use cases for its token.
While the $DOOD token launch has been disappointing for many, the Doodles project still holds potential for recovery if it can focus on building trust with the community and developing new functional capabilities.
