Traders are paying hefty fees, reaching up to an annualized rate of 2,000%, to acquire the relatively lesser known CYBER tokens, as their value has surged by over 100% on select exchanges in the past week. Investors are taking on this cost to trade on margin, but they face the risk of sudden market downturns.
Most of these surges in the market are brief and occur in an overall pessimistic environment. Even when Bitcoin (BTC) is not making significant moves, one can still find a plethora of niche token pumps in the crypto world.
For instance, consider the CYBER token associated with the Web3 social network CyberConnect, boasting a market capitalization of $113 million. Over the past week, its value has more than doubled, marking one of the most substantial spikes in an otherwise stable market. Trading volumes have surged accordingly, with approximately $225 million worth of these tokens changing hands in 24 hours.
CyberConnect facilitates the development of blockchain-based applications related to digital identity, content, and social connections. It offers features like CyberGraph, a smart contract for recording user content and social connections, and CyberID, an ERC-721 token that serves as a unique handle for user accounts within the CyberConnect ecosystem.
Traders are eager to participate in the aforementioned surge, willing to pay over 2,000% in annualized fees to trade these tokens on margin. However, it is worth noting that CyberConnect could become the latest fleeting trend in the crypto world. Similar projects like Friend.tech, which enables notable individuals to create chat groups gated by tokens, initially gained popularity but later saw a staggering 95% drop in revenue within just over three weeks.
The majority of CYBER trades are also occurring on Binance, accounting for 74% of the total CYBER trading volume. UpBit, a Korean exchange, follows with $70 million worth of these tokens traded.
Still, there is considerable concern that altcoins such as these could continue to dominate the headlines over mainstays like Bitcoin and Ethereum (ETH), providing more ammunition for regulators to implement stringent policies on this industry when the seemingly inevitable price decrease occurs.
CYBER Experiences Massive Price Increase, But There Is A Catch
Subscribe to the CryptoWeekly Newsletter
Get the top stories, funding deals, technical analysis, cryptocurrency jobs and much more delivered to your inbox, every Monday morning.
October 17,2024
An Overwhelming Majority Of Asian Private Wealth Is Investing In Crypto
October 17,2024
WLFI Token Raises $5 Million As Technical Issues Persist
October 16,2024
DeLorean Motors May Copy Tesla And Adopt SHIB As Payment Option
October 16,2024
Everything You Need To Know About The New Ripple Stablecoin
October 15,2024
Hyperliquid Announces New HYPE Tokens Ahead Of Mainnet Launch
October 15,2024
New Ethereum Proposal Could Drastically Reduce Validator Threshold
October 14,2024
US DoJ Aims To Boost Market Trust By Targeting Meme Coin Scammers
October 14,2024
Chinese Researchers Breach Cryptographic Algorithms Via Quantum Computing
October 14,2024
Web3 Fundraising Deals - 8th To 14th October 2024
October 13,2024
Bitcoin Touches $63K As Meme Coins Continue To Soar
October 12,2024
Former Crypto CEO On The Run As Authorities Issue Arrest Warrant
October 11,2024