The logic of small market value cryptocurrency skyrocketing is becoming more and more magical. Recently, a cryptocurrency with the same name as the new crown virus strain "Omicron" was suddenly hyped, and the price increased by more than 9 times within a few days. After the outbreak of the "Omicron" strain, a variety of financial assets plummeted, and Bitcoin failed to escape the plummeting trend. However, this small market capitalization cryptocurrency of the same name suddenly soared for no reason, which shows that the cryptocurrency market is full of irrational hype. It is worth noting that on the 29th, this cryptocurrency suddenly crashed 76% within one hour, which can not help but recall the "tragedy" of the value of "Squid Coin" after it soared by 2,300 times. These cases remind us that no matter how attractive the increase is, investors must not forget the risks faced by cryptocurrency investment. The "Omicron" cryptocurrency of the same name skyrocketed by more than 9 times at one time On November 26, local time, the World Health Organization issued a statement that the new coronavirus mutant strain B.1.1.529 was listed as a mutant strain that "needs attention" and named it Omicron. On the 27th, a cryptocurrency of the same name named "Omicron" gained attention and rose rapidly. According to Coinmarketcap data, the price of the currency has been hovering at US$69.7 per coin before gaining attention, but yesterday, the price of this currency soared to US$711 per coin, an increase of over 9 times. But yesterday afternoon, the price of this cryptocurrency fluctuated sharply, from a flash crash of US$633 per coin to US$152 per coin within one hour, a drop of about 76%. As of 4 pm on the 30th, the price of this cryptocurrency was hovering around US$380 per coin. Born a few weeks ago
Earlier than the date the new strain was named Public information shows that Omicron is described as a "decentralized treasury-backed currency protocol" based on the expansion technology of Ethereum, Arbitrum, and it was launched a few weeks ago. Its birth predates the naming of the "Omi Keron" strain. This cryptocurrency can only be traded on the controversial decentralized exchange SushiSwap. Forbes commented that the decentralized nature of such exchanges means that there is no central agency responsible, and they are often subject to hacker attacks, exploits, and so-called carpet attacks, resulting in the theft of user funds. As of 5 a.m. Eastern time on November 29, the number of official Twitter followers of the Omicron cryptocurrency was only 1,079. Recently, the Twitter also reposted Forbes' news report on Omicron's skyrocketing. Bitcoin plummeted, but Omicron's small market capitalization skyrocketed The irrational phenomenon of the cryptocurrency market is obvious Recently, under the influence of the "Omi Keron" new crown virus strain, many types of assets have been sold off, and the cryptocurrency leader Bitcoin has also plummeted. On the 26th, Bitcoin plummeted by 8%, and then the price rebounded slightly. In response, Tally Greenberg, business development director of blockchain company Allnodes, commented in an email, “The cryptocurrency market has largely nothing to do with the traditional market. However, sometimes even cryptocurrencies follow world events. The new Covid The news of the -19 variant shocked the world, and our path to global recovery has added another uncertainty, which has led to a sharp decline in cryptocurrencies, large and small, plummeting stocks, and ties across all countries." While the cryptocurrency market fluctuated downwards, the Omicron cryptocurrency skyrocketed for no reason, which shows that the irrationality of the cryptocurrency market is very obvious. However, when all kinds of cryptocurrencies have fallen, there are still people who are optimistic about the cryptocurrency market. According to Forbes, Martha Reyes, head of research at the digital asset prime broker and exchange Bequant, said in an email comment: “The news of the emergence of a new Covid variant in South Africa has led to widespread selling across asset classes.” “If the blockade is true Happened, this is not our basic situation, it will lead to more helicopter money, and ultimately benefit the digital assets." "Omicron" is not the first cryptocurrency that has skyrocketed due to its popularity. At the beginning of November this year, a "Squid Coin" (SQUID) that exploded with the popular drama "Squid Game" also once soared. It is reported that this cryptocurrency started online trading on October 26. Soon after, its price soared by more than 2,300 times, reaching $2,861.80 per piece. However, on November 1, the price of the currency rose and fell back, falling to $0.0008 within a few minutes, and its value was almost zero. According to industry insiders, scams similar to squid coins are difficult to detect until they reach a certain scale. Since most blockchain networks are open source, exchanges lack control and influence over these projects, and it is difficult for regulatory authorities to supervise the listing of cryptocurrencies.
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