Free Coin (FREE) is an ERC-20 token which launched during the second quarter of 2018, and for the most part languished down in the lower depths of the market cap rankings.
However, a Mercatox exchange listing in October saw the token’s fortunes start to turn around, and ultimately led to a 950% surge which began on Sunday and peaked at around 5am Tuesday.
What is Free Coin?
The Bitcointalk forum announcement for the token starts off with a bold gambit. It states:
“…the FREE Coin is a crypto coin that starts with no monetary value, and with a high supply. With 1400 Free Coins available per person on earth it is the only coin with sufficient supply to be adopted worldwide as store of value and exchange of value.”
The ‘free’ aspect of Free Coin refers to its very low starting price of 0.0000000001 ETH. With only 1 and 5% of the world using cryptocurrency according to the announcement, Free Coin stands to be used as a gateway drug to introduce the average Joe or Jane to the world of crypto:
“We need to invite the other 95 % to try out the potential of cryptocurrencies. Therefore we offer a (nearly)FREE Coin, so that everyone can play with this coin without financial risks : create and restore wallets, send to other wallets, test how Exchanges work…”
Free Coin launched a matter of months ago, but already is knocking at the door of the top one hundred by market cap. Its current position in the 120s is no doubt helped by the insanely high supply of FREE.
FREE has a capped total supply of exactly 10 trillion, with around 2.7 trillion of those currently in circulation. Coins and tokens like Dentacoin (DCN) and Dogecoin (DOGE) have a reputation for ridiculously high supplies, but their respective 325 billion and 116 billion pale in comparison to Free Coin.
When addressing the question of whether FREE had a chance of increasing in value, the Free Coin team wrote:
“That is inevitable. Initially it is distributed free of cost, but as more people start to use it the laws of supply and demand will make that the price increase. The price of a coin is based of the TRUST of people in a coin. Because people use it effectively, the trust will increase over time.”
FREE/USD 950% Spike
In the two days leading up to November 6th, Free Coin went on an incredible run, from a token price of $0.000002 up to Tuesday’s peak of $0.000021 before trailing off.
That’s a 950% increase between Sunday and Tuesday, and is even more remarkable for the fact that it came off the back of a mere $1,200 daily trade volume. The highest volume of FREE ever traded on one day was $40,000 in mid-October, shortly after the Mercatox listing.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.