Huma Finance token drops sharply after launch
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Huma Finance (HUMA), the payment finance network looking to accelerate global payments, has seen its native token’s price drop sharply after going live on exchanges.
The price of HUMA dropped more than 20% shortly after launching on multiple exchanges, including Binance Alpha and spot markets.
Per data from CoinMarketCap, the Human Finance token’s value rose briefly to hit highs near $0.12. However, the token began to drop sharply soon after, with its price hitting support near $0.077 at the time of writing.
Why is Huma Finance price down?
Hype around Huma Finance has built over the past three days, with its much-anticipated exchange launch rising after Binance added to its Launchpool and offered a three-day staking event from May 23 to 25.
Despite the price action, the debut of HUMA on markets marks a significant milestone for Huma Finance as the first platform looks to bring its PayFi network to more users.
This dip may therefore pave the way for a steadier pump once the initial downturn fades.
One of the main reasons behind HUMA’s price dip appears to be post-launch profit-taking.
During the Binance Launchpool event, 250 million $HUMA tokens, about 2.5% of the total supply, were distributed to participants.
The crypto market has often seen early investors and airdrop beneficiaries sell their tokens immediately to secure profits.
Many high-profile listings have witnessed such movements, and Huma is likely in this fold.
With a 24-hour trading volume of just $56 million, the limited liquidity has amplified the price swings, making $HUMA particularly vulnerable to selling pressure.
Adding to the challenge are the tokenomics and airdrop structure of Huma Finance. The project allocated 500 million HUMA tokens – 5% of the total supply – to airdrops, with 65% of that going to liquidity providers.
Many of these recipients likely sold portions of their tokens, further contributing to the downward pressure.
While the team and investor tokens, which make up 39.9% of the supply, are locked for 12 months, the retail-friendly unlocks have created a short-term oversupply in the market.
What next for HUMA?
The price dip in HUMA is typical of the volatility that often hits new projects after they launch their tokens in the market.
Huma Finance will likely follow this path, with further dips as weak hands sell. If the downside pressure fades amid a crypto market uptick, the HUMA price will bounce hard.
Some coins are rising to buoy buyers.
Huma Finance’s PayFi market is also a strong long-term bid, which means navigating the price downturn is crucial for bulls.
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