Highlights:
- Render is one of the biggest losers on a day when the broader market is weak
- RNDR selloff triggered by confusion about exchange support for transition
- Fears of losses on Render futures pushing investors to sell
While most cryptocurrencies are experiencing some weakness today, Render (RNDR) is undergoing a pronounced selloff. At the time of writing, RNDR has seen a significant drop of 10%, trading at $5.82. This steep decline follows the loss of critical weekly support at $6.2924 with high trading volumes.
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The primary driver behind this selloff is confusion and uncertainty surrounding Render’s ongoing transition from the Ethereum network to Solana and the upgrade of its token ticker from RNDR to RENDER.
I trade futures in Render and I have been at a loss for a long time. On July 16, Binance will automatically close futures trading. This is not fair.
— Enes Orhan (@bzmgr_sol) July 11, 2024
Transition to Solana and Ticker Upgrade
The Render Network Foundation, which oversees the governance of the Render project, announced two major votes in 2023 that have profound implications for the network’s future. The first vote, RNP-002, resulted in a community decision to migrate to Solana as the Layer 1 infrastructure. The second vote, RNP-006, involved incentives for the community to upgrade their RNDR tokens to RENDER.
The Render Network launched as an Ethereum project in 2017 and switched to Solana in 2023 following a community vote. This move aimed to leverage Solana’s faster transaction speeds, lower fees, and enhanced capacity to handle more on-chain data and transactions.
Incentives and Upgrade Challenges
In RNP-006, the community approved incentives to encourage users to upgrade from RNDR to RENDER. A total of 1.14 million RENDER tokens were set aside for early upgraders, distributed based on a points system. This distribution occurs monthly, starting in November and continuing until October 2024. The points system is designed to reward early adopters more generously, with diminishing rewards for later cohorts.
For example, a wallet holding 100,000 RENDER in the first cohort would receive points translating into a proportional share of the 1.14 million RENDER incentives distributed monthly. However, despite these incentives, the upgrade process has encountered hurdles.
Exchange-Related Confusion
A significant source of confusion stems from inconsistent support from top-tier exchanges. Exchanges like Binance, OKX, Kraken, HTX, and MEXC have automatically upgraded users from RNDR to RENDER, but Coinbase has not. This lack of automatic upgrade support from Coinbase means that users must manually upgrade their tokens, leading to confusion and frustration.
This issue has been further compounded by the fact that some Futures traders are dissatisfied with the handling of the upgrade. For instance, there are reports that Binance has announced the closure of RNDR futures trading on July 16, regardless of profit or loss. This has sparked criticism from traders who feel disadvantaged by the sudden changes.
Community Reaction
The community’s reaction to these developments has been mixed. While some users appreciate the incentives and the potential for improved network performance on Solana, others are voicing concerns about the upgrade process and its impact on their investments. On social media, several users have expressed their frustration, calling for better coordination between Render and exchanges like Binance to address the issues faced by futures traders.
One X user highlighted the need for Render to collaborate with Binance to resolve the Futures trading issue, stating, “Binance does not do automatic upgrades. They have stated that they will close futures on July 16th, regardless of profit or loss. You need to resolve this issue in collaboration with Binance. We trusted the project and invested in it for a long time.”
Another user expressed concern about being at a loss due to the upcoming closure of futures trading on Binance, emphasizing the perceived unfairness of the situation.
Technical Analysis and Market Outlook
From a technical analysis perspective, RNDR’s breach of the critical support level at $6.2924 is concerning. Prices below $5 could be imminent if this trend continues, especially if Bitcoin remains directionless.
Bitcoin’s current lack of momentum adds a layer of uncertainty to the broader cryptocurrency market, which could exacerbate Render’s challenges.
Recap on RNDR Current Price Action
Render’s accelerated selloff today is primarily driven by confusion and uncertainty surrounding the token upgrade process. While the network’s shift to Solana and the accompanying incentives are aimed at long-term growth, the immediate impact has been a sharp price decline and heightened community concerns.
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