Up 67,000% in just 24 hours! Cryptocurrency's mind-boggling rally raises red flags (2024)
New Delhi: Talks of eye-popping returns from a lesser-known cryptocurrency in a few hours are not new to crypto enthusiasts. SQUID, Shiba Inu and Kokoswap have done it. Now, there is an addition to that list: HuskyX (HUSKYX).
The new cryptoverse has delivered about 67,000 per cent return in the last 24 hours. The digital token is commanding a market cap of $1.5 billion.
The little-known token had surged to $0.000001485 from merely $0.000000008738 in 24 hours. However, it was trading at $0.000001477 at 1.30 pm IST on Monday. The traded volume of the counter surged about 3,450 per cent with tokens worth $1.06 million exchanging hands in the past one day. There are a total of 990,030.97 billion tokens in circulation.
It brings in a new concept called “rebasing” to adjust the increase or decrease of supply, says Sharat Chandra, a Blockchain & Emerging Tech Evangelist. "Rebase ensures that the value of the token doesn’t change irrespective of an increase or decrease in the circulating supply of the tokens. Rebase gets triggered especially when the prices dips. This is one of the major drivers behind the HUSKYX rally."
HuskyX is a deflationary token, which means the supply is always decreasing, making it more and more rare. Each HuskyX transaction is taxed, and a small percentage of the coins are burned. But holding these can be rewarding too.
Shivam Thakral, CEO, BuyUcoin, says HuskyX is another meme coin and a sudden rise in its price could be a short-term phenomenon. He asks investors to be cautious while investing in such tokens and diversify their portfolio across multiple crypto assets to minimise risk.
Market experts and analysts say investors should not fall prey to fear of missing out and understand the token before investing.
Manav Bajaj, founder, Panther Quant, says there are certain red flags in this token and a due diligence should be done before purchasing. "There is negligible liquidity and high transaction fee," adds Bajaj. "Also, rebasing reduces your holdings and affects your investments."
Irregular patterns relating to the size, frequency, or type of crypto transactions may be red flags pointing to money laundering activity, including: Customers making several high-value transfers within a short amount of time, such as a 24-hr period.
However, recent developments, such as the approval of Bitcoin Spot Exchange Traded Funds (ETFs) by the U.S. Securities and Exchange Commission and the upcoming Bitcoin halving event, have injected substantial investments into the market, bolstering overall sentiment.
The US Federal Bureau of Investigation (FBI) has warned against crypto services that are not registered with Money Services Businesses (MSBs). In this regard, the FBI recommended that users use the FinCEN tool to verify cryptocurrency service compliance.
Examples of scams are giveaways, hustles involving new romance, phishing, extortion emails, fake company alerts, blackmail, "rug pulls," and may involve fake mining apps or networks. Signs of crypto scams include poorly written white papers, excessive marketing pushes, and get-rich-quick claims.
If Wood is correct and Bitcoin reaches $3.8 million, a $100 investment in Bitcoin today would be worth $5,510 in 2030. This translates to a compounded annual growth rate (CAGR) of over 95%. While the prediction is bullish, Bitcoin's 14-year CAGR is well over 220%, so it is not entirely out of the question.
Investor uncertainty surrounding U.S. inflation and interest rates also weighs on crypto prices. Today's crypto market decline is part of a correction that started on July 1 following recent remarks by Federal Reserve chair Jerome Powell that reduced possible rate cuts in 2024.
Being a project that stands out for several reasons, EarthMeta could potentially be the next 1000x in crypto space. Since the project integrates AI with the Metaverse, creating a decentralized digital world, it allows users to own, govern, and interact with virtual cities and assets, providing a unique experience.
So, who are the top holders of BTC? According to the Bitcoin research and analysis firm River Intelligence, Satoshi Nakamoto, the anonymous creator behind Bitcoin, is listed as the top BTC holder as of 2024. The company notes that Satoshi Nakamoto holds about 1.1m BTC tokens in about 22,000 different addresses.
Bitcoin's upcoming rewards halving and the ETF approvals in early 2024 could drive a bullish market sentiment in the long run, indirectly benefiting Ripple. All things considered, Ripple's path to $1 by 2025 is based on solid developments and strategic growth.
A red flag refers to some warning signal that points to a potential threat, real or perceived—and which warrants further investigation. In investing, a red flag is a threat to a company's share price, which can appear on a company's financials, via headlines, or through social media.
In the world of cryptocurrency trading, the color red typically signifies a decrease in price. When a candlestick or price bar on a chart is red, it means that the closing price is lower than the opening price. This can indicate a bearish trend, signaling a potential downtrend in the market.
Traders can use a bull flag chart pattern to trade a trending market. For instance, if the cryptocurrency price is trending upward, a buy-stop order can be placed above the high of the flag. If it is moving downwards and the flag violates on the lower side, a sell-stop order can be placed below the low of the flag.
Nothing about cryptocurrencies makes them a foolproof investment. Just like with any investment opportunity, there are no guarantees. No one can guarantee you'll make money off your investment. Anyone who promises you a guaranteed return or profit is likely scamming you.
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