Several penny tokens have performed well over the past few months but have remained under the radar because of various reasons, including the fact that they are not as popular as the market leaders and are thus relatively less monitored. Take, for instance, Bitecoin. This less-known cryptocurrency has surprised many with its stupendous rise in just 24 hours. Between January 16 and 17, the coin has rallied 19,650 percent to reach $0.000003271 from its previous value of $0.0006462, according to CoinMarketCap, a market research agency that tracks price movements of several coins.
However, by January 18, it lost a big chunk of its gains to settle at $0.0003839. And this sudden spurt and decline in its value have cast doubts on the coin’s potential as a lucrative investment destination. Financial experts often warn about “phishing” coins that rise suddenly and then lose all the gains even more rapidly. A similar extreme volatility was noticed in a cryptocurrency inspired by the South Korean series Squid Game. Named after the show, the coin tried to capitalise on euphoria but lost all of its value within 24 hours in an apparent scam. This kind of scam is commonly called a “rug pull” by crypto investors.
Experts advise caution while investing in coins that promise stunning deals. They ask potential investors to first do their research and read about the coins and only when they are satisfied with the coin’s trustworthiness should they put in their money. Also, volatility is a feature in the new cryptocurrency industry, so it’s always a good idea for investors to evaluate their risk appetite before entering the market.
Meanwhile, the Bitecoin has now been ranked at 4,562 position on CoinMarketCap. The virtual coin has a total circulation of 6,10,000. And its maximum supply is capped at 1,000,000,000,000,000 (One one quadrillion).
In another move, Bitecoins will now be released on the basis of Binance Smart Chain platform and comply with ERC20 standard.