- PAAL AI token plunged over 60% in 24 hours, dropping from $0.3276 to $0.1181, causing market cap to shrink from $257 million to $96 million.
- The price decline follows PAAL's announcement of a proposed merger with the Artificial Superintelligence (ASI) Alliance, with community voting scheduled for November 18-23.
- The merger proposal includes converting PAAL tokens to FET tokens at a 6.24:1 ratio with a 180-day vesting period and 5% merge fee, sparking negative community reaction.
- PAAL's price has reached historical support levels between $0.092-$0.13, with potential recovery depending on the merger vote outcome and community response.
Date: Wed, Nov 13, 2024, 07:02 AM GMT
In a bearish move for $PAAL holders, the blockchain-based chatbot platform that leverages AI and machine learning saw its token experience a steep 60% drop in value over the last 24 hours, sliding from $0.3276 to $0.1181. This dramatic plunge also impacted its market capitalization, which shrank from $257 million to just $96 million.
Why Is the Price Declining?
The steep price drop is largely tied to PAAL’s recent announcement of a proposed merger with the Artificial Superintelligence (ASI) Alliance. The PAAL team revealed the proposal on X (formerly Twitter) on November 12, indicating a plan to let PAAL holders vote on joining ASI. Voting is set to open on November 18 and will close on November 23.
Here are the main points of the proposed merger:
- Token Conversion: PAAL tokens would be swapped for FET (ASI) tokens at a rate of 6.24 PAAL to 1 FET.
- Vesting Period: Token release would be gradual over 180 days, with daily allocations.
- Pricing Reference: Average prices are calculated based on a 30-day window—$1.56 for FET (ASI) and $0.25 for PAAL.
While this proposal aims to tie PAAL to a potentially larger ecosystem, community feedback has been overwhelmingly negative. Many holders voiced frustration, questioning why they should pay a 5% token merge fee and lock up their assets for 180 days in a vesting schedule.
Will PAAL Rebound?
Given the strong community pushback, it’s possible that the proposal will be rejected. Additionally, PAAL’s price has now reached a historical support zone, between $0.092 and $0.13, which has held steady for the past year. If PAAL can maintain this level, there’s a chance for recovery once the situation around the merger becomes clearer.
However, whether PAAL bounces back or continues to decline will likely depend on the final outcome of the proposal vote and any further communication from the PAAL team.
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