Alibaba Doppelganger Surges 100% in Mindless Crypto Pump
This cryptocurrency surged more than 100%, seemingly for no reason at all. | Source: Shutterstock
ABBC Coin – the cryptocurrency formerly known as Alibabacoin – on Tuesday surged as much as 106.17-percent to reclaim its mid-March high.
The ABBC-to-dollar rate jumped as high as $0.367 ahead of the Asian session close. The pair later corrected lower by circa 14-percent towards a floorless area, indicating that the asset was overbought. As the US session matures, ABBC could see an extended selling correction, mostly because the market lacks fundamentals to support the uptrend any further.
On the whole, the ABBC rally attracted just $46 million worth of daily volume, even though the cryptocurrency’s market cap leaped by more than $60 million. It is difficult to understand how the total daily volume, which generally includes both the buying and the selling trades, came in below the entire ABBC market cap surge at the same time.
The largest slice of ABBC’s trading activity took place against bitcoin on crypto exchange TOPBTC (about 16.50-percent of the total volume). The supposedly Australia-based cryptocurrency exchange does not hold a stellar reputation among customers, mostly for allegedly offering a poor fund withdrawal system and slow customer support. ForexBrokerz reviewed :
“They are not a member of ADCA, the local organization of companies in the space. Their trading software appears decent, but the support for very alternative and for a lack of a better word ‘dead’ coins is troubling. That being said, the countless claims this exchange is actually a scam are the most troubling factor.”
This Crypto Rally Lacks Fundamentals
The only major event preceding the ABBC rally was related to Alibaba. The Chinese e-commerce giant reportedly agreed to settle a trademark dispute with the ABBC Coin Foundation, though that occurred almost a month ago and saw ABBC agree to stop trading on the Alibaba brand.
On the whole, the latest ABBC boom does not seem to have any legs to stand on. It makes the surge rather dubious, one crypto investors should think twice about before gambling their hard-earned funds.
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