This cryptocurrency climbs over 300% in a day; is it a pump and dump?

Connect coin's (XCON) crazy price action. What's driving the chaos?
Image by KC Bajai from Pixabay

Key Connect Coin takeaways:

  • Connect coin’s unusual price action
  • What’s driving the sudden volatility
  • XCON joined by a number of smaller coins experiencing similar volatility

YEREVAN (CoinChapter.com) — Connect coin (XCON) is not new crypto on the block. However, the recent drastic curves in the price action are noteworthy. The digital asset surged by 304.36 percent, only to lose another 99 percent, all in 24 hours on July 26. It is not entirely clear what caused the sudden volatility.

XCON’s price action has been relatively stagnant after establishing its all-time high of $0.68 in May 2019 and steadily losing value for the next few months. The price fell to approximately $0.001 by January 2020 and hasn’t seen drastic action since then.

Connect coin price action. Source: XCON on Messari.io
Connect coin price action. Source: XCON on Messari.io

Also read: AXS falls on a bullish crypto day as Axie Infinity runs into server issues

However, the past 24 hours showed a significant spike in volatility. XCON went from $0.00038 at 00:00 on July 26 down to $0.000037. After the sudden fall, the price rose again to $0.00042, only to lose another 99%. The volatile action continued throughout the rest of the day, establishing a stable value at approximately $0.000442 by July 27.

XCON weekly price action. Source: XCON on Crypto.com
XCON weekly price action. Source: XCON on Crypto.com

According to stats from Messari.io, the 24-hour range went from $0.000109 to $0.000477.

Connect Coin, This cryptocurrency climbs over 300% in a day; is it a pump and dump?

At a modest market cap of only $17,300, Connect Coin is actively traded only on HitBTC centralized crypto exchange. Despite the volatile price action during the noted period, the trading volume was notably low and stood at only $81 in 24 hours. The low trading volume is indicative of a possible pump-and-dump action when a small number of actors manipulate the price for future profit.

Also read: Amazon denies Bitcoin payment rumors; BTC price dumps 10%

Random crypto price actions

Volatility is nothing new in the crypto market. However, some coins are far more volatile than others.

Connect Coin didn’t show violent price swings in the past year.

As a result, the recent fluctuation came as a surprise. However, the reason behind it is not entirely apparent. Currently, the XCON token is ranked #2438 in the list of cryptos by market cap, with XCON/USD trading at 0.000445. But it’s not the only coin that saw drastic spikes in value. Small coins come and go similarly all the time.

Another example is WebDollar (WEBD), which jumped up and down in price by over 100% in a single day back in June 2021. As a result, it jumped to 18th place in the cryptocurrency ranking overnight, only to drop back to 873rd place.

Similarly, though not as drastic, Internet Computer Protocol (ICP) managed a spectacular debut and jumped into the top 10 hours after its launch. Currently, the digital asset is ranked 22nd.

Also read: Internet Computer Protocol (ICP) price pumps 42% on solid buying pressure and fundamentals.

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