The RaveDAO price collapse last week led to billions of dollars in losses as it plunged from $28 to below $1 within a few days. Its fully diluted valuation (FDV) has also dropped from over $24 billion to less than $200 million.
This collapse was in line with BanklessTimes’ prediction, as the token came out of nowhere to become one of the biggest names in the crypto industry. The initial surge was notable as no one knew what RaveDAO really did and why it jumped.
Its website describes itself as an entertainment brand where local ambassadors organize events. In a post that went viral, ZachXBT warned that the surge was clearly part of a market manipulation.
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He pointed to suspicious addresses on top exchanges like Binance, Gate, and Bitget. Also, he noted that the eventual collapse happened despite having low liquidations of just $53 million. This ratio pointed to manipulation.
Most importantly, ZachXBT pointed to other tokens that have exhibited these characteristics. One of them is MemeCore, which went from nowhere to become the second-largest meme coin in the industry, with a market cap of over $6 billion.
Interestingly, unlike Shiba Inu and Pepe, no one ever talks about MemeCore, and its daily volume rarely moves above $30 million.
He also pointed to other tokens such as River, Siren, MYX Finance, Pippin, and ChainOpera (COAI), which are often among the best-performing coins. For example, Siren has accumulated over $510 million in market capitalization and just $11 million in volume.
ChainOpera has a market cap of over $315 million and a volume of just $5 million, while MYX Finance has a volume of $18 million, suggesting there is little demand.
These pump-and-dump schemes are highly popular in the crypto industry because it is unregulated. Anyone, including a government entity, can create a coin and have it listed in the top exchanges. Memecore is listed on Kraken.
This is in contrast to the stock market, where companies must undergo a lengthy process to be listed. After listing, they must deliver regular disclosures, including when an insider sells or buys the asset.
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