Ethereum Classic – An altcoin and a derivative of the popular Ethereum cryptocurrency has been on a bull run in recently with its value jumping by over 27%. However, it needs to be properly introspected as to whether this rally is backed with any particular future development plan or is just another pump-and-dump scheme. Pump-and-dump is usually a trick played by notorious players which pulls the price up for a short time – which can be either a few hours or even a few days.
Prior to Ethereum Classic, another altcoin Bitcoin Cash has a similar bull run last week, which was also a pump-and-dump case, and the latest stats show that the volumes for Ethereum Classic are coming from the same exchange.
The Ethereum Classic has jumped from $10 to $15 backed by no specific and solid reason. Many believe that this rally is to nullify the fall the alt coin had witnessed during the Bitcoin rally past week, but still this rise seems to be unjustifiable.
However, the latest graph shows that the trading volumes are increasing and Ethereum Classic has entered the list of top 10 cryptocurrencies as per market capitalization. In the past 48 hours, there has been a huge surge in the trading volumes of ETC with over $588.5 million worth of ETC getting exchanged.
On digging further into the details, reports show that majority of the volumes for pumping ETC value are coming from one of South Korea’s largest exchanges – Bithumb. It is contributing to 53.13% volume while Coinone is another South Korean exchange has contributed 17.5% in volumes. This is a classic case of pump-and-dump and these platforms are well known for generating such cycles in the past.
Many believe that the ETC momentum could continue further and even might touch a new peak. Investors are requested to stay careful before deciding to participate in such rallies which are hollow in nature and backed absolutely with no good reason. For novice participants there is a high chance of risking your investments and one might end up burning his/her fingers.
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