thecoinrepublic.com
A plethora of cryptocurrencies have already flooded the internet it’s as if a new one is being introduced every day. With that in mind, one of these cryptos got quite the traction recently where its market valuation skyrocketed by over 180,000 percent, but took a nosedive almost returning to its previous price.
The dubious WebDollar’s rise
The cryptocurrency known as the WebDollar (WEBD) had a price of $0.0003834 before the above-mentioned surge amounting to $0.7128. Now that’s a whopping 185,000 percent price jump. Such activity happened in a short span of just three hours, not to mention that within this period about $7.65 billion went into the cryptocurrency market on Monday.
Truly, this is one of those wild price activities as it was documented by CoinMarketCap that the first jump happened at 9:54 GMT where WebDollar’s market capitalization rose from $1.84 million to $1.5 billion at around 9:59 GMT – five minutes is all that took. It then plunged to $5.12 million at 10:39 GMT and rose again to a new high of $9.5 billion at 11:29 GMT.
WebDollar’s fame was short-lived, however, when the digital currency’s market valuation came tumbling down to just $10.38 million as of 7:00 GMT on Tuesday. In less than a couple of hours, that’s a steep decline of 99 percent.
During WebDollar’s short reign, the said digital asset’s ranking went as a high #17 in terms of market capitalization. As of writing, the token is on the 967th spot at $0.0006266 with a market cap of $8.3 million.
Mysterious IndoEx
It’s pretty much evident that what happened here is a case of a so-called pump-and-dump where by definition is an attempt to boost the price of a certain stock via fraudulent recommendations. In WebDollar’s case, it pushed its market valuation up and down by the billions even though its trading volume stood still at $400,000. It was also noticed that the token’s trading activity came from just one exchange dubbed IndoEx.
This IndoEx is said to be registered in the United Kingdom with company number 12029621. However, it’s operating without the U.K. Financial Authority’s approval. Back in November of 2020, the U.K. Registrar’s office called its attention for not disclosing details about the firm’s shareholders. The only response the registrar received was when IndoEx provided a name for its sole shareholder – Collin Spencer. He was described as IndoEx’s CEO who holds 1,200 shares of the company. Nonetheless, upon further checking, it may well seem that such an individual does not exist. A certain Grace North was also mentioned, but this too may well seem to be made up.
Check on the cryptocurrency first
Folks who fell into this sure did learn a valuable lesson: not to delve into sketchy cryptocurrencies that could potentially leave you financially crushed. It is advisable to scrutinize firms’ whitepaper, admin, and company before investing in any form of cryptocurrency.