- Tellor price surged hard to over $500 and then plummeted immediately.
- The crash triggered substantial liquidations as it caught traders offguard.
- This is a clear sign of a pump and dump scheme by participants.
Tellor (TRB) crypto price was in the spotlight in the past few days as investors observed weird moves. The token initially surged by over 500% to its record high of $525 and then quickly crashed to $125. On Tuesday, the price stabilized around $183, giving it a market cap of over $455 million.
TRB pump and dump
Tellor is a blockchain project that seeks to offer a decentralized oracle network. It aims to be a faster and better version of other oracle networks like Band Protocol, WINKLink, and Chainlink.
Tellor price has been in the spotlight after unveiling its plans for 2023. In a statement, the developers said that they were working on creating Tellor Layer, an Layer 1 oracle chain. This technology will provide more accessibility, scalable security, and seamless integration across all chains.
The other important Tellor news was the plans to incorporate in the Non-Fungible Token (NFT) industry and to enter the vibrant South Korean market. Its team will work with the country’s crypto community to boost its growth there.
Still, the biggest Tellor news was the performance of its TRB token, which went vertical on December 31st and then crashed shortly thereafter. It initially jumped from less than $300 to over $525 in one of its best days on record.
TRB token then crashed hard, triggering substantial liquidations. Data compiled by CoinGlass shows that the shorts liquidations jumped to over $39.9 million on Monday, its highest increase on record. Longs liquidations in the same day rose to over $17 million.
It is unclear why Tellor token price jumped but analysts believe that it was a coordinated pump and dump situation. This is a situation where a person or a team pushes an asset substantially higher and then dumps it. These events are relatively popular in the crypto industry, because of the lax regulations in the sector.
A closer look shows that most of Tellor’s trading volume came from low-rated crypto exchanges. Most of the volume was from UEEx, a relatively unknown Chinese crypto exchange. The other exchanges were Websea, SuperEx, and Topcredit.
Tellor price forecast
The daily chart shows that the TRB token price went parabolic and moved above $500. It then crashed hard to below $125 in a clear sign of a pump and dump. The volume also rose and then retreated sharply.
Tellor token remains above the 50-day and 25-day moving averages despite the recent crash. Therefore, I suspect that the token will maintain its volatility in the coming days. As such, I’d avoid Tellor and instead focus on other big coins like Avalanche, Bitcoin, and Solana.
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