YEREVAN (CoinChapter.com) – The native token of Arbitrum-based Layer 3 blockchain XAI games crashed 35% after its trading launched on Binance late on Jan 9. As a result, the token price dropped to $0.52 on Jan 10.
XAI Price Rollercoaster Continues
The XAI coin price initially surged after its listing on Binance. Following the farming period, Binance listed the token on Jan 9. The available trading pairs for XAI included XAI/BTC, XAI/USDT, XAI/BNB, XAI/FDUSD, XAI/TUSD, and XAI/TRY.
At the time of the report, the XAI token’s market capitalization stood at $147 million, with a trading volume of $445 million in the last 24 hours. In some cases, a higher trading volume compared to the market cap could signal market manipulation. This might involve “wash trading,” where trades are artificially inflated by someone buying and selling to themselves to create misleading market activity.
However, the lower market cap compared to the trading volume could also simply be a side effect of a recent listing. If a token has not been trading on a major exchange for long, or there has been significant news about the project, it can lead to a temporary spike in trading volume as traders react to the new information or availability.
Which XAI Are We Talking About?
Additionally, the confusion with the other Xai token, which doesn’t have a verifiable social media account or team, raised concerns and urged investors to be cautious, as it might be a potential scam or “rug pull”.
The crash of the XAI token appears to be linked to a mix-up with another cryptocurrency that shares its name. Confusion arose when another cryptocurrency, also named Xai but with the ticker ‘X,’ experienced a massive surge of over 2,600%, trading at a significantly lower value. This situation led to warnings for investors to distinguish between the two XAIs to avoid potential scams.
The confusion also prompted the XAI team to issue a warning against the scammers.
