COTI, a prominent blockchain project, has seen a staggering -188.05% drop in just 24 hours. What caused this dramatic crash? Let’s dive into the key factors shaking investor confidence.
COTI Network Upgrade Delays Spark Panic
The COTI team announced a three-month delay in their highly anticipated network upgrade, originally set for July 2025. This upgrade aimed to enhance:
- Transaction finality
- Smart contract capabilities
- Network scalability
Community frustration grew due to poor communication about the delay, leading to a sell-off.
Governance Shifts Divide the COTI Community
COTI is transitioning from token-weighted voting to a hybrid model, incorporating node operator input. Critics argue this could:
- Reduce decentralization
- Dilute token holder influence
- Increase centralization risks
DeFi Partnership Cancellation Adds to COTI’s Woes
A major DeFi collaboration was abruptly canceled, citing strategic misalignment. This setback weakens COTI’s position in the competitive DeFi space.
Token Burn Suspension Raises Inflation Concerns
COTI’s token burn program, a key deflationary mechanism, was suspended indefinitely. Analysts warn this could lead to:
- Increased supply pressure
- Long-term price instability
- Reduced investor confidence
What’s Next for COTI?
With multiple challenges ahead, COTI must regain trust through transparent communication and swift execution of its roadmap. Investors should monitor:
- Upgrade rollout in October 2025
- Governance model adjustments
- New partnership announcements
Frequently Asked Questions (FAQs)
Why did COTI’s price drop -188.05%?
The crash resulted from network upgrade delays, governance changes, a canceled DeFi partnership, and suspension of the token burn program.
When is COTI’s network upgrade now expected?
The upgrade is delayed to October 2025, three months later than initially planned.
How does COTI’s new governance model work?
It combines token holder votes with node operator input, reducing dominance by large token holders.
What does the token burn suspension mean for COTI?
Without burns, inflationary pressure may rise, potentially impacting long-term price stability.
Will COTI recover from this crash?
Recovery depends on successful execution of delayed upgrades, governance stability, and new strategic partnerships.
