Polkadot (DOT) price corrects after gaining 100%

Polkadot logo

Polkadot (DOT) price is currently engaged in the correction phase after gaining nearly 100% last week to trade at 5-month highs.

Fundamental analysis: Major design exercise announced

Polkadot announced a major design shake-up on Wednesday, with key decisions being made and approved by its community and representatives. It hired renowned design agency Koto to get a major on-chain rebrand.

The fact that decisions will be made on-chain is revolutionary when it comes to the design industry.

“All network participants can weigh in on the brand’s direction and evolution, as well as the experts who craft it. It’s quite unprecedented,” Katie Butler, chief of marketing at Polkadot-based project Moonbeam, said.

Peter Mauric, head of public affairs at Parity Technologies said the reasons behind making the redesign process on-chain were clear.

“Polkadot’s social contract is clear: changes to the network must be approved through its governance system, and that doesn’t just refer to code,” Mauric said. “Brand identity and direction are crucially important elements to a growing network like Polkadot, so it was never in doubt that these efforts would need to be led, funded, and approved by the community.”

The rebranding process will be governed by four curators who represent the Polkadot community. The project has been split into three stages, and in the first stage, the work was approved by the Polkadot council, and Koto’s compensation of  €10,150 ($12,412) was paid in Polkadot’s native token DOT through the on-chain “bounty”.

Koto is a popular design studio whose portfolio includes a number of major brands including Sonos, Nike, Paypal, Airbnb, Venmo and more. Polkadot’s DOT token is also getting a redesign, which is currently based upon the letter “P” in the Polkadot’s logo.

The redesign process is expected to take around 10 months – 3 months for the initial stage and around 7 months before the launch of the new design.

Technical analysis: DOT takes a step back

DOT/USD price has fallen about 4% today to add to yesterday’s losses of 4.4%. It is now evident that the price action is in the correction mode after travelling above $10.50 for the first time since August last year.

DOT/USD daily chart (TradingView)

Polkadot price exploded higher last week, when it managed to gain nearly 100% and trade above the $10.00 mark. The ongoing correction may extend to $8.50 where the nearby support for DOT buyers is located.

Summary

Renowned design studio Koto has been hired to give Polkadot a major rebrand, set to occur on-chain. In the meantime, the DOT/USD price is correcting after recording major gains last week.

The post Polkadot (DOT) price corrects after gaining 100% appeared first on Invezz.

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