CaliforniaCoin was a run-of-the-mill altcoin that hoped to capitalize on the media attention surrounding bitcoin investor Tim Draper’s “Six Californias” plan. However, Draper failed to acquire enough signatures to get the proposal on the California ballot. CaliforniaCoin suffered a similar fate, and the developer eventually abandoned the project. A core group of investors tried to revive the project, but they have since gone silent as well. Nevertheless, the CaliforniaCoin price rose 900% during the past week–but why?
CaliforniaCoin Price Rockets 900%
CaliforniaCoin attached itself to a failed political movement and never managed to gain momentum. Recognizing this, the developer abandoned the project, and most investors have as well (all major CaliforniaCoin discussion boards lay dormant). By all accounts, CaliforniaCoin should be dead.
However, some traders have begun buying CaliforniaCoins–driving the price up 900% on SWISSCEX, the largest CaliforniaCoin exchange. As the DOGE/CAC chart below demonstrates, the CaliforniaCoin price shot up this past week, rising as high as .0878 DOGE at press time.
CaliforniaCoin now has a market cap of ~$27,500, which places it 172nd on the cryptocurrency market cap charts. Granted, this is a very low market cap, but it still seems high considering the coin has not had a stable developer for several months, no longer has a website, and has not had a post in its primary Bitcointalk thread since September.
The CaliforniaCoin price rise makes no logical sense. Most likely, traders are exploiting its low market cap for a small-scale pump and dump. This coin is going nowhere, so investors should stay far away.
Why do you think the CaliforniaCoin price exploded this week? Comment below!
Disclosure: The author is paid in and holds investments in bitcoin. He is not invested in or affiliated with any of the altcoins discussed in this article. Any advice contained in this article is solely the opinion of the author and does not reflect the views of CCN. Neither the author nor CCN is liable for your investing decisions, so do your homework and never invest more than you are willing to lose.
Images from CaliforniaCoin and Shutterstock.