ConstitutionDAO Lost Its Bid for the Constitution. The PEOPLE Crypto Is Still on a Wild Ride.

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Less than a month ago, a rare investment opportunity presented itself as investors were offered the chance to own a piece of the U.S. Constitution. Not a physical piece, though. ConstitutionDAO, a decentralized autonomous organization, was seeking investors to join its mission to purchase a first-edition copy of the U.S. Constitution. While the DAO did not win, its native ConstitutionDAO (CCC:PEOPLE-USD) crypto remains in play. Today that token is on a wild ride.

A rolled up copy of the U.S. Constitution on top of a folded American flag.

Source: Shutterstock

What’s Happening With PEOPLE Crypto?

To start, the PEOPLE crypto has experienced $9 million in liquidations today, according to CoinDesk. Since the initial frenzy of ConstitutionDAO’s rise, sellers have been taking both bullish and bearish bets on the token. As we are learning, momentum has not been kind to either group of investors.

When ConstitutionDAO failed to achieve its objective, its contributors received the PEOPLE crypto as a form of refund for their investments in the DAO. The organization’s site currently offers investors the chance to “exchange $PEOPLE for its original value (minus gas fees) at contribution.”

These recent events have likely been accelerated by the market momentum that’s driven many larger-capitalization cryptos down this morning. Ethereum (CCC:ETH-USD), Binance Coin (CCC:BNB-USD) and Solana (CCC:SOL-USD) are all down for the day and week. The PEOPLE crypto has followed its larger peers, currently down 4%.

Why It Matters

As CoinDesk notes, the PEOPLE crypto has no “utility and offers no governance rights to holders” but that hasn’t stopped crypto traders. At this point, it’s clear that the trading frenzy that has helped propel the PEOPLE crypto is leading mostly to losses.

It’s worth noting, though that while PEOPLE experienced $9 million in total liquidations today, only $4.99 million occurred on long positions taken by traders betting that the price would move upward. This left $4.1 million to occur on short plays, driven by traders betting that prices would fall.

What It Means

These recent trends that we’ve seen regarding the PEOPLE crypto are interesting in that they are somewhat unusual. Liquidations, a situation in which traders lose their initial capital, typically occur with Bitcoin (CCC:BTC-USD) and Ethereum. For the lesser-known PEOPLE to go on such a wild ride this morning is out of the ordinary. In fact, wild ride is almost an understatement at this point.

How should investors assess the future of the PEOPLE crypto? At this point, it doesn’t seem like there is one. ConstitutionDao.com states that the project has “run its course.” Although prices have risen over the past week, that shouldn’t distract investors from the volatility we’ve been seeing. There will almost assuredly be other DAOs like it that will follow, but with the organization effectively out of commission, there seems to be no clear path forward for the token it spawned.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Samuel O’Brient is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on recent political news that investors should be following.


Article printed from InvestorPlace Media, https://investorplace.com/2021/12/constitutiondao-lost-its-bid-for-the-constitution-the-people-crypto-is-still-on-a-wild-ride/.

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