On Feb 28, 2020, CoronaCoin, a new digital token backed by Coronavirus was launched where inestors can benefit off the deaths caused by the virus.
First announced via a Reddit post, crypto users can bet on the spread of the virus by investing in the CoronaCoin (NCOV), which will rise in value with the continued spread of the Coronavirus.
The token’s algorithm ensures that with each new death, CoronaCoin investors make more and more profit. Needless to say, the announcement has aroused widespread resentment on social media, with many arguing that investors would have to hope for more infected folks.
That said, the intent of the new token may well be honorable. According to the CoronaToken official website, the token that presumably known to cause economic deflation is actually contributing towards relief efforts. Approximately 20% of the total sale of CoronaCoin will be donated to charitable organizations combating the virus.
Does CoronaCoin Reveal the Worst of the Crypto industry?
According to the CoronaCoin website, the token’s main purpose is to raise awareness about the virus in the crypto space and beyond. The startup behind the token said it is running an airdrop for the CoronaCoin, with each new user address getting a reward of 100 NCOV.
That said, the fact that a larger extent of the spread of Coronavirus makes the coin’s investors make more money is enough to strike all the wrong chords and spark widespread criticism.
On the other hand, this instance can’t be representative of the whole cryptocurrency industry, as some prominent exchanges in the industry have stepped up to offer substantial crypto donations to combat the disease. For instance, top exchange Binance announced a donation worth approximately $1.5M for the relief of coronavirus victims.
CoronaVirus Impacting Crypto Markets Big Time!
The deadly Coronavirus is already turning out to be a big threat to the crypto industry, with operations and volumes expected to experience serious hits.
The spread of the virus has also reportedly led to the cancellations of many major crypto events across Asia, which could be having a huge impact on the industry influence of these events.
Nevertheless, BTC seems to have benefited from strong safe-haven demand generated by coronavirus fears amid investors.