Audiera (BEAT) token jumped for the third consecutive day, reaching its highest level since June 19, as its market capitalization rose to $676 million.
Memecore (M) price rose 12.4%, bringing its valuation to $1.15 billion. This rebound happened as its 24-hour volume dropped by 28% to $26 million. It happened after plunging by more than 80% the day before.
The SKYAI token also rose by 10%, bringing its valuation to $337 million. Its 24-hour volume dropped by 17% to $30 million.
All these tokens have always been suspicious because of their thin liquidity and low trading volume. They also lack any utility to justify their hefty valuations. For example, before this retreat, Memecore had a market capitalization of over $5.85 billion. In a statement this week, ZachXBT, a popular online investigator, asked key exchanges to justify their listing.
Another suspicious thing about Memecore is that, despite crashing by over $80% on Thursday, its liquidations were just $8.25 million. Similarly, on June 10, when the Audiera price surged by over 300%, its total liquidations stood at less than $10 million.
The crypto market has experienced several major pump-and-dump events in the past few months. A good example of this is Audiera, which came out of nowhere in May and then jumped over 10,000%, reaching a high of $7.9. It then retreated sharply, erasing some of those gains.
READ MORE: Audiera Price is Pumping: Top Reasons to Avoid the BEAT Crypto Token
The same happened with SKYAI, which remained inside a narrow range between May last year and April this year. It then went parabolic, surging over 4,000% to a high of $0.8660. Because there was no catalyst for this move, the token plunged by over 85%.
These schemes are common in the crypto industry because, unlike in the stock market, the industry is lightly regulated. Anyone can launch a token and have it listed on key exchanges like Binance, Coinbase, and Upbit without making any disclosures.
Therefore, the ongoing recovery of Audiera, SKYAI, and Memecore seems to be a dead-cat bounce (DCB). A DCB is a situation in which an asset jumps sharply after a major dive, then starts diving again.
READ MORE: Mantle Price Crashes 15% as Crypto Market De-Risks
