Pump-and-dump? Crypto turns Rs 1,000 into Rs 2.37 crore in a day

By November 16, 2021Ethereum
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New Delhi: Cryptocurrencies are known for their wild swings in a very short span of time, while micro tokens are renowned for their bizarre moves. Such tokens, with miniscule market cap and extremely trimmed liquidity, deliver ultra-multibagger returns in just a day or two. However, not all investors can make money in such tokens.

Squid Games-based SQUID and Kokoswap (KOKO) are the prime examples. The latest entry to this list is Ethereum Meta (ETHM), which has surged more than 2.35 lakh per cent in the last 24 hours, according to data from Coinmarketcap.

The digital token skyrocketed a whopping 2,37,000 per cent in a matter of hours. The price of this token hit $0.0001194 from merely $0.00000005033 during the period. However, it was trading at $0.00006449 at 11.30 am IST.

Did you Know?

Indians' investments in crypto grew from about $200 million to nearly $40 billion in the past year

The total market cap of this token was a little above $8.5 million, with its traded volume jumping more than 160 per cent in the last one day, at the time of writing this report. The total supply is 99,000,000,000, which is the maximum limit for this token. However, 50.01 billion ETHM tokens were in circulation, the data suggested.

Hitesh Malviya, founder, itsblockchain.com, said Ethereum Meta was trading on a couple of decentralised exchanges with a 24-hour trading volume of around $150,000. "One can expect extreme volatility where the volume or liquidity is low. One large whale move can crash the prices. Investors should keep in mind such scenarios of manipulation before investing a single penny in this new project."

Ethereum Meta is not a new name in the crypto world. It has been around for three years. Ethereum Meta addresses a major weakness in Ethereum: the lack of privacy. It essentially enables smart contracts where no one can see what has been bought or for how much.

An upgrade called Smart Contract Mixer would be added to the Ethereum platform after it implements Zero-Knowledge Snarks, said Raj A Kapoor, Founder, India Blockchain Alliance. This would make the system more efficient. "Moreover, Ethereum Meta token is also a foundation of the anonymous e-marketplace that is accessible by the Tor Browser, and it provides a fully anonymous experience," he added.

Analysts, however, have called this another scam where the price increase happens on the charts and no investors can see any real profits in their accounts.

The token price is going up only because $4,659 has been added to increase liquidity, said Manav Bajaj, Founder, Panther Quant. So, technically, a purchase of $5,000 adds to the volatility. "Tokens are mintable so developers can at any time increase the supply. Also, 99 per cent of the tokens are in one wallet. People buying or promoting these kinds of tokens just by looking at the growth on the charts are stupid," he added.

Market experts said such stories in the cryptoverse were purely pump-and-dump plays.

Abhay Aggarwal, Founder and CEO of Colexion advised that investors should be skeptical of such tokens as their prices are almost negligible and liquidity lies in the hands of few.

"It is quite easy for someone to launch tokens and create a buzz. But investors should not fall into such traps and risk their money. They must focus on the team behind the token and projects aided by it," he added.


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