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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How will Powell's re-election as chairman of the Federal Reserve affect cryptocurrencies?11/23/2021 US President Biden will re-nominate Fed Chairman Jerome Powell for another four-year chairmanship. This news gave Wall Street a sigh of relief. During the turbulent two years under the epidemic, the Federal Reserve's decision to cut interest rates and its measures to support the economy helped the United States avoid a long-term recession, and won Powell praise from professional and amateur investors.
Now, Powell faces new challenges: inflation is accelerating, supply chain disruptions are increasing, and some help needs to be reduced during the worst period of the epidemic. The main responsibility of the chairman of the Federal Reserve is to maintain price stability, guide decisions on when to raise or lower interest rates, and help as many people as possible find employment. Therefore, what the Fed does and Powell's re-election affects almost every aspect of Americans' daily financial lives, from their home purchase goals to retirement savings to the prices they pay for groceries. Keith Lerner, chief market strategist at Truist Consulting Services, said that Powell's re-election marks the continuation of loose monetary policy. He said: “This is good news for people who invest in retirement and 401(K) plans.” However, the chairman of the Federal Reserve is only one of many factors that affect the market and investment. He said: “There are also epidemic trends, economic trends, and Supply chain factors." What impact will Powell's re-election have on the crypto industry? In the past two years, the prices of high-risk investment assets such as cryptocurrencies have soared due to low interest rates, increasing consumer savings and US government stimulus measures. The price of Bitcoin has almost doubled since the beginning of the year. If Powell delays raising interest rates, investors may remain enthusiastic about such high-risk investments. There is also a view that cryptocurrencies can hedge against inflation. Proponents say Nowadays, many mining companies are betting on a reliable energy supply and a more predictable regulatory environment in the United States. According to data released by the University of Cambridge in the United Kingdom, more than one-third of the world's bitcoin mining hash rate comes from miners in the United States, compared with less than one-fifth in the spring of last year.
According to reports, bitcoin mining has become a lucrative business, and the current price of a bitcoin is about $60,000. In order to obtain new bitcoins, powerful computers compete to solve a series of mathematical problems, hoping to unlock new bitcoins. Many of these miners are online 24 hours a day. According to the design, the Bitcoin network only releases new cryptocurrencies every 10 minutes, and the number of Bitcoins released in the future will be reduced. This makes the competition to unlock Bitcoin an energy-intensive task, because the only way to increase the odds of winning is to get more miners online. Currently, Bit Digital, a NASDAQ-listed mining company, has added more than 20,000 miners to the miner team located in New York, Nebraska, Georgia, Texas, and Alberta, Canada. Due to continued shipping delays, some miners are still stranded in US ports. However, "mining" is not entirely risk-free in the United States. For the cryptocurrency industry, the United States has its own regulatory restrictions. Cryptocurrency companies have become the target of regulatory agencies, and the chairman of the US Securities and Exchange Commission Gensler has adopted a strict control approach to the cryptocurrency market. Gensler questioned whether many virtual currency issuers and exchanges ignored investor protection rules. In addition, because some old fossil fuel factories are back online, Bitcoin mining has also caused local people's concerns about climate pollution. The New York State Legislature is considering introducing a bill that prohibits the use of fossil fuels for Bitcoin mining and calls on mining companies to record their carbon footprints. The US Securities and Exchange Commission is also considering measures to require listed companies to disclose climate data. However, cryptocurrency companies said that the setting of the legal system in the United States ensures that the law takes longer than other countries to implement law, thereby allowing Bitcoin mining companies to adapt to and weigh potential policy changes. In addition, cryptocurrency companies also believe that the United States has recently approved several US exchange-traded funds (ETFs) holding bitcoin futures, which also shows that the United States is unlikely to suppress or drastically cut bitcoin mining. Compass Mining CEO Whit Gibbs called this "a positive signal of trust from regulators... I hope this is a signal that they will support Bitcoin mining." Texas, the US, is a popular destination for Bitcoin mining companies with nowhere to stay because of the low electricity prices in the state and the generally reliable power supply (despite a power outage that lasted for several days last winter), which is crucially important for Bitcoin mining. The friendly stance of the state government also attracted mining companies. The state's banking regulatory agency said it will allow lending institutions to hold digital assets on behalf of customers. At the same time, Miami is also striving to move cryptocurrency mining companies to Florida, saying that energy prices in the state are low and a nearby nuclear power plant can provide reliable renewable energy. However, mining companies need to be housed in data centers, and the high real estate prices in the state make other markets more attractive. Musk changed his name on Twitter, and the cryptocurrency of the same name was born quickly, soaring 800% in 6 hours
Musk renamed Lorde Edge on Twitter The cryptocurrency of the same name was born quickly On Sunday, Eastern Time, Tesla CEO Elon Musk changed his Twitter People quickly used this name, and the cryptocurrency named "Lorde Edge" was born quickly and officially started trading last night, Beijing time. But some people think that this new name has nothing to do with cryptocurrency. Instead, according to Webster's Dictionary, some Twitter users said that Musk's new name might refer to "edge lord," an Internet slang term referring to a person who desires attention or acts boldly or unconventionally people. Although there is no indication that Musk himself has any connection with this digital currency, the price of this encrypted currency has been pushed up quickly.name to "Lorde Edge." It is worth noting that the market value of this newly born cryptocurrency is still minimal, so it is easy to skyrocket and plummet. 6 hours skyrocketing 842% Then it quickly plummeted by nearly 80% According to coinmarketcap data, at around 6:48 pm on Sunday, November 8th, Beijing time, the cryptocurrency named Loder Edge officially started trading, and the price was around US$0.00000313 at that time. The cryptocurrency skyrocketed the night before. In the early hours of yesterday, at around 0:48, the price of this cryptocurrency once touched $0.00002948, which was 842% higher than when it started trading. This means that in about 6 hours, this cryptocurrency has skyrocketed by more than eight times. However, the rising trend of this cryptocurrency could not be maintained. In the early hours of yesterday morning, the cryptocurrency plummeted after hitting an intraday high. At around 1:53 am on the 9th, this cryptocurrency quickly fell to $0.000006858, a 76.74% drop compared to the intraday high. At around 10:30 am yesterday, the cryptocurrency fell to 0.000006086 US dollars, a plunge of 79.35% from the intraday high. Dogecoin is also hitting hot spots Once soaring over 9% Musk did not explain the reason for the short name change of Twitter, and there are many kinds of speculation on the market. The founder of Dogecoin said on Twitter that "Lorde edge" is an anagram of "elder doge" (that is, words with the same letters but different alphabetical order). The founder of Dogecoin also pointed out that this does not mean that Musk changed his name on purpose, but "Lorde edge" is indeed an anagram of "elder doge." In the comments made by the founder of Dogecoin on Twitter, many believe that Musk is concealing Dogecoin again, and some netizens expect Dogecoin to rise accordingly. Dogecoin also succeeded in catching up with the hot spot. It broke through $0.29 on the 8th. Compared with the closing price of 0.2653 on the 7th, it rose by more than 9%. Musk has repeatedly expressed his support for the development of Dogecoin. Yesterday, Dogecoin announced the release of the Dogecoin Core 1.14.5 upgrade. Following the reduction of the relay fee in 1.14.4, 1.14.5 reduced the recommended fee and included bug fixes and performance improvements. In this regard, Tesla CEO and the world's richest man Elon Musk reposted and commented on Twitter: "This is important." In October, Musk also tweeted that he planned to build a university in Texas called Texas Institute of Technology. He also stated in a reply that the university's tuition fees would be paid in Dogecoin, adding that if you are a dog owner, you can also get a discount. Small market capitalization cryptocurrencies are prone to skyrocketing and plummeting Investors need to be aware of risks Like stocks with small market capitalizations, cryptocurrencies with small market capitalizations will also face liquidity, price volatility, and other issues. Investors must remember not to be dazzled by high yields because cryptocurrencies often plummet rapidly after they skyrocket. On October 26, the Squid Coin (SQUID), named after the hot drama "Squid Game" officially began trading. The cryptocurrency was issued for $0.01, and the price soared to $2,856.64 on November 1. But after the price peaked, it quickly plummeted to only $0.0008 within a few minutes, and the value was almost zero. Data shows that when the squid coin plummeted, the currency holders exceeded 46,000. CoinMarketCap also warned that Netflix did not officially launch the project but just used the same name. The price of the cryptocurrency Dogelon Mars named after Tesla CEO Musk has also skyrocketed and plummeted. In the early morning of October 31, the cryptocurrency's price once rose to 0.000002587 USD, an increase of more than 333% within 24 hours. But on November 5, the cryptocurrency price fell to $0.0000008889, a drop of more than 65%. |
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