Berachain is down over 27% at last check Saturday, trading around $5.99 following its recent listing on Crypto.com.
The token’s (BERA) steep decline comes despite gaining exposure on multiple major centralized exchanges, including MEXC, Upbit, and Bithumb.
Berachain, promoted by its pseudonymous founder “Smokey,” officially launched on Feb. 6, after more than a year of anticipation, during which it secured over $100 million in funding.
Originally stemming from the Bong Bears NFT (non-fungible token) collection, the project introduced a Proof of Liquidity consensus model, differentiating it from traditional proof-of-stake blockchains.
The Bong Bears NFT collection launched on Aug. 26, 2021, on the Ethereum blockchain. This collection consists of 100 unique, cannabis-themed bear NFTs and serves as the genesis project for the Berachain ecosystem.
While Berachain has gained traction for its innovative design, some industry executives have raised concerns over its early funding strategy.
Blockworks quotes one critic who takes issue with the fact that the project sold NFTs first before pivoting to blockchain development.
Despite its recent exchange listings, BERA’s price drop raises questions about market confidence and the sustainability of its liquidity-driven model.
