Several low-profile Altcoins experienced significant jumps in price, as cryptocurrency markets had a good day overall on July 6. NEXO was up about 5 percent in North America during trading on July 6. Cryptocurrency, in general, had been trading in a down mode for the past several weeks.
NEXO is backed by the crypto exchange of the same name. The currency jumped after an announcement that the company had signed an exploratory agreement with crypto lender Vauld. The agreement gives the London-based NEXO an exclusive 60-day period to explore and potentially acquire 100 percent of the company. Vauld had frozen customer deposits, withdrawals, and trades on July 4.
Other low-profile altcoins showed even more significant gains than NEXO. STORJ, which operates on the Ethereum blockchain, was up about 12 percent. Sandbox’s SAND, Thor chain’s RUNE, MKR, and AVAX also showed significant gains. Ether, a well-known altcoin and the native cryptocurrency of Ethereum, was also up significantly.
Some Altcoins Decline in Value
The picture was not entirely rosy for altcoins, however. CEL, the cryptocurrency on the Celsius Network, dropped more than 8 percent. Its investors had recently succeeded in keeping prices high to prevent others from scooping up the cryptocurrency at a low price.
$GARI, Chingari’s native token, dropped 80 percent the following day, July 7. Chingari is a short video-sharing app similar to TikTok that pays its creators in $GARI. $GARI has a $1 billion fixed coin supply; 75 percent of its supply is concentrated in three wallets, leaving about $250 million available for trading. One wallet controls almost half of the $GARI supply.
A significant event occurred with $GARI, a highly hyped coin that trades on Gate, Kucoin, and OKX. Over a recent 22-day-period, only about 30 million $GARI was traded. Suddenly, trading volumes jumped significantly, with 68 million $GARI being traded within 24 hours. The volume then increased again to 110 million $GARI. Finally, on July 5, the volume doubled to $260 million $GARI.
AltCoinBuzz believes the project’s fall doesn’t necessarily mean all Creator projects will fall in the bear market. However, it suggests that the significant drop is instructional for cryptocurrency investors in several ways.
- Influencer-backed coins are prone to significant volatility.
- Investors should see a red flag when a project’s selling point is that it will replace a successful Web 2 business.
- Tokenomics is critical.
The term “altcoin” refers to any cryptocurrency other than Bitcoin, the first cryptocurrency.
Sources:
https://capital.com/crypto-market-wrap-low-profile-altcoin-prices-steal-the-show
https://www.altcoinbuzz.io/cryptocurrency-news/why-is-gari-down-80-in-a-day/
