LimeWire, a popular free peer-to-peer file-sharing client that allows users to download games, movies, and images, all for free, has found a new life in the Web3 space as a marketplace. But the return did not go so well because the native LMWR token, which was launched on May 16, crashed by over 80% — from $2 to $0.2 — immediately after the release.
Even a series of listings and token burns has not yet saved the story, but there are chances that this is temporary. What the creators are offering to users and whether the value will return at least to the previous price range will be discussed further.
Hello from the past: What is LimeWire?
The product was most popular in the early 2000s as the main tool for downloading files. The process involved piracy [the practice of downloading and distributing copyrighted works digitally without permission, such as music or software], which is still illegal in many countries. In addition, the program itself was dangerous to use, as many malicious programs (such as LimeShop) were embedded in it.
Two versions were available to users: the basic free version and the advanced one. The latter, according to its creators, allows one to download files much faster (by 66%) and has improved algorithms for finding the necessary information. However, after some time, users discovered a loophole and found a way to use the PRO version of the product without permission.
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The “get copyrighted content for free” approach was not to everyone’s liking, and LimeWire received a lot of abuse from both the performers and the average user. In October 2010, a U.S. court banned the program. The damage to the entertainment industry was estimated at $72 trillion, which was eventually reduced to $105 million. The program has not been released since then, and the remaining copies were simply deleted.
In March 2022, it became known that the creators of LimeWire plan to revive the platform with a focus on Web3, but without the participation of developers from the old team. In July 2022, the NFT marketplace was launched, but the creator of the original application, Mark Gorton, who is also the chief executive of LimeGroup, criticized this reuse of the LimeWire brand.
LimeWire’s early concept was to download copyrighted content for free, so the current move to NFT is an unusual one. As digital content that has a certain value, the non-fungible tokens are mostly images, but they can also be music, videos, or even mini-games that can have only one owner.
This approach goes completely against what the original version of the product offered, since apparently LimeWire bosses now plan to sell content by giving the rights to whoever pays for it. However, the authors probably won’t be left behind, as they will be able to:
- Interact with fans and thus monetize their content even more.
- Receive royalties every time a file is sold or resold.
- Get a steady income from monthly subscriptions to their content.
- Create communities around their brand.
Moreover, not only musicians or artists will be able to use the platform to earn money. The new LimeWire is expected to become a space for content creators of almost any type.
At the very least, the platform should be doing well with music content, as LimeWire recently signed a deal with Universe Music Group.
7/ In fact, they recently signed a significant deal with Universal Music Group, enabling them to launch music-based NFT projects through their marketplace.
Last year, LimeWire raised $10.4 million in a private token sale led by Kraken Ventures, Arrington Capital, and GSR.
— 2xnmore (@2xnmore) May 16, 2023
Heart of the LimeWire ecosystem: What is the LMWR token?
An essential part of the new platform will be the use of a token called LMWR, which will be the basis of the entire ecosystem. According to the intention, its holders get a lot of benefits from interaction with the platform, both for users and content creators.
In mid-2022, there was a private pre-sale of the token, which sold out $10.4 worth of LMWR. The creators were able to raise that amount thanks to investors such as Kraken Ventures, Crypto.com Capital GSR, and Arrington Capital.
In March 2023, there was a community presale. Then all issued tokens were sold out in two days. On May 16, the public sale of the asset began. So, according to CoinMarketCap, there are currently 41,821,549 LMWR in circulation out of a possible one billion, or 4%.
However, the launch of the token was not entirely successful, and it fell immediately after the release.
LMWR’s current price and reasons for the fall — comments from the platform’s representatives
The token entered the market at $1.9228 but almost immediately collapsed to $0.6233 and is trading at $0.2358 as of this writing. In one day, the difference was minus 87,77%.
Thus, all of those who bought the token at the start incurred losses. Moreover, the value of the asset has fallen below even the price at the time of the presale. Then LMWR was sold at $0.3, which, of course, outraged users.
@limewire You made a first in this industry, you pre-sell for 0.30 cents, you raised 17 million dollars, you have to protect the price, now the price is below the pre-sale, it’s called fraud$LMWR #bitcoin #kraken #kucoin #crypto
— 𐱅𐰇𐰼𐰰 (@cryptotr90) May 17, 2023
However, representatives of the company quickly responded to the worries of users and tried to explain what was happening. So, according to them, the rise in price to $2 was caused by trading with very low volume on Uniswap before LMWR was listed on CEX. Thus, such value allegedly “was not stated representative.”
2/ You can see here that the initial $2 spike was based on very low volume of only $5k, which was caused by small trades from public sale buyers who received their #LMWR last night. pic.twitter.com/IbHNFBRJPA
— LimeWire (@limewire) May 16, 2023
Now the number of token holders, according to Etherescan, is 2,061 users. And their number is growing, adding 1,071% in the last 24 hours.
Will LimeWire be great again?
Meanwhile, the coin has already been listed on eight exchanges (Bitpanda, BitMart, Bybit, Kraken, Kucoin, Gate.io, Crypto.com, and Bit2Me) and is also available on TrustWallet and Atomic wallets. And all of this in just 24 hours.
However, as we wrote above, this has not yet had any effect on the value of the asset, which continues to fall for no good reason. At the same time, given the high volatility and unpredictability of the cryptocurrency market, it may turn out that the token will start its bullish run in the near future. Especially if the explanations of the company’s representatives are correct.
Most likely, token listings will continue, which could also lead to an increase in their value. Plus, it’s worth noting that so much attention to a seemingly new asset doesn’t always turn up, which could also be a definite sign. Maybe the fact that the brand is already familiar to many users will have an impact.
The majority of hype we are seeing is due to their new low-cap token $LMWR launching today. It will instantly be available to trade on major exchanges like Kraken, Binance US, KuCoin and https://t.co/ZYF54CrlWp. That is definitely not something you see everyday with new…
— Meags.eth (@DogeGirl420) May 16, 2023