Monumental Gains and Scams
Cryptocurrency is a notable exception because it has its fair share of overnight successes. For instance, the Squid Game (SQUID) token recently posted a 450X surge in a matter of days. It tapped on the wild success of Netflix’s Squid Game only for users to be rugged. Could there be a connection? Are some scammers using massive gains to pull crowds to a project, only for them to dump the coin and rug them off their hard-earned money? What is the truth behind these figures?
The Coronavirus pandemic led to a poor run across several markets, with traditional heavyweights such as the stocks taking a heavy beating. Crypto markets, however, proved resilient, with several coins breaking records. Back in 2017, Bitcoin witnessed a steep rise from around $800 in Q2 to reach a then all-time high of about $20k.
The coin had a similar rally in 2020, whereby it marched from $5k to $30k by December of the same year. A noteworthy fact is that digital assets have witnessed massive gains within short time frames. However, the caveat here is that for Bitcoin, it took about ten months to hit the new highs.
Recently, the Chinese government’s ban on crypto trading saw crypto markets take an enormous hit, with some coins shedding up to 50 percent of their trading value within 24 hours. Nonetheless, it is a known fact that digital assets are volatile; they gain and drop because of external market forces.
Lessons from the DOGE Scam of 2014
Dogecoin is popular as Bitcoin, thanks to Elon Musk and Twitter. Surprisingly, the name is homonymous with a close encounter with a dangerous activity or a narrow escape, a Deja Vu kind of scenario to what transpired in 2014. Dogecoin developed from a meme into a widely traded phenomenon, which has held through the years until today.
In 2014, there was a spat with the coin that ended up being a scam. A fellow named Alex Green in the United Kingdom took up a challenge—he set up a platform known as Moolah. Green joined Dogecoin and traded it via his new trading firm, inviting many crypto enthusiasts. Unknown to them, Green was out to fleece them. Green was a serial scammer called Ryan Kennedy, well known for vanishing with people’s investment shortly after launching a product under the pretense of a startup. However, in 2016, police arrested him for rape, and he is currently serving an 11-year jail term.
Dogecoin has grown over the years following the scandal, recently exploding in valuation to be one of the largest digital assets in the world with multi-billion valuation. Mainly because of endorsements from Elon Musk and other high-profile celebrities, DOGE continues to be part of the crypto fixture, finding utility, shaking off its terrible past.
Why is BlowUP Blowing Up?
Certainly, the bullish attitude on the token comes from confidence among investors. It is the first that rewards $USDT for holding it in a BEP-20 wallet. Remember, it is young and well into the reach of many investors, a prospect no one can ignore. The exciting prospect of its nascence, the potential it has for the future and the rewards are the reason for its sudden bullish run, gaining a staggering 6,000 percent.
Investors alone understand that any digital asset is as useless as an ordinary rock in the real world and becomes only useful in the trading terminals and crypto groups. If that is not all, some tokens have taken marketing to a completely new level, even paying influential rappers to increase their respective market value.
In 2019, Soulja Boy, a renowned hip-hop star, took to Twitter to talk about cryptocurrency, a new thing for someone in the industry. The rapper mentioned his love affair with Dogecoin. The ripple effects of the tweet led to a rally in Dogecoin trading.
Perhaps it is time to admit the truth about the happenings in the crypto space; celebrity endorsement and claims of price manipulation might be the order of the day. However, when money leads, as we are made to believe in the current world, any market would resolve into anything to have their product increase in value in a fraction of a second.
Is BlowUP a scam?
BlowUP is a token, maybe in the less-known category. An interesting fact is that holders gain $USDTs to their wallets for just having the coin. The token name may be a red flag for skeptics and scam busters, but the project is functional, has a wide base, is worth millions, and is inspired by exciting features integrated in most successful meme coins.
The USDT earn feature and launch on the scalable, low-fee Binance Smart Chain (BSC) might be reasons why the project is gaining traction. However, BlowUP has also employed nifty marketing tactics to strategically prop prices all while encouraging users to hold onto their coins as the token edge higher, defying gravity.
Therefore, regardless of any highs and lows, people will always be on the winning end, as the charts will always look healthy even during reported dips in value. The strategy might sound fishy, but a rule of thumb in the crypto world is that digital assets might fluctuate, and investors must always do their due diligence lest they find themselves holding mud.
If anyone wants to hold BLOWUP and is unfazed by the volatility, even seeing it as a non-issue, they should buy it. Hopefully, they will find another person to sell to in the future. That is what crypto memecoin trading is all about, speculation.