Crypto price increases are always a nice thing to see, especially when the price increase is above 50%. Most cryptocurrencies are hovering at a relatively stable price since the start of the year. ABBC Coin however, is a project no one probably heard about until a few days ago.
If we look at the 1-day performance, ABBC Coin performed so well that it left titans like Bitcoin and Ethereum behind. The price increase went up to 65% yesterday. This resulted in the coin’s market capitalization growing from $135 million to $249 million. Thanks to the magnificent Thursday performance, ABBC entered the top 25 cryptos group.
If we look at the data from Coinmarketcap, we can see that after the rally the coin has taken a 20% hit. Considering yesterday’s success, that is something completely expected. This can largely be attributed to the fact that most people are not sure what drove the price increase. Some people believe an airdrop was responsible while others tend to take the more pessimistic approach and share their concerns about a fake pump.
Of course, there are others, who believe that ABBC is actually a blockchain project with a stable, long-term development plan. There is nothing to point to the fact that ABBC is a groundbreaking project. However, the investors who fueled $249 million to its market cap believe in the platform.
The platform revolves around blockchain-based facial recognition allowing users to perform purchases via their face. While as a concept the idea sounds revolutionary, the actual implementation and adoption seems to be the tricky part.
The ABBC platform shows promise, but what is that the real reason behind the price increase
When we look at the scale of the price rally, it’s normal that some people would declare that it is entirely artificial. This means that a lot of individuals are buying their own assets and promoting them on social media boards in order to create a fake buying hype. This unfortunately will lead to the individuals dumping their asset as soon as the buying hype is over. The investors are left holding the bags and that unfortunately, has been the bane of many crypto related projects.
The price increase can also be entirely because of the airdrop announced by the ABBC Foundation between February 20th and February 24th. The foundation gave away 500 000 ABBC tokens. Unfortunately, the giveaway was through CoinBene, which is a Singapore based crypto exchange with questionable regulatory credentials.
Nevertheless, during the giveaway ABBC prices were between $0.068 and $0.106. When the giveaway was finished, the price instantly began to rise and on February 28th, marked its new monthly high of $0.40.
The current bear market and the many examples from the last few years have taught investors to be cautious. Whether or ABBC is a pump-and-dump or not will be revealed in time. More projects like this are bound to pop up over time and investors need to keep their eyes open.
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