The Graph’s GRT Pumps and Dumps Following the Crowd Euphoria & Listing FOMO
The price of GRT skyrocketed more than 650% to $0.77 in a matter of a couple of days, thanks to the crypto exchanges’ FOMO.
As we reported last week, the mainnet of the indexing protocol The Graph (GRT) went live, which helped push up the token prices.
The indexing protocol and global API for organizing blockchain data, The Graph, allows developers to use its Explorer to search, find, and publish all the public data needed to build decentralized applications.
The day the mainnet was launched, the very same day, Coinbase listed the token on this platform, made it available on its apps, and allowed its users to make some money in GRT through its EARN program.
But this was expected as Coinbase Ventures was an investor in The Graph’s $5 million token sale earlier this year.
GRT’s Coinbase listing led other big crypto exchanges like Binance, OKEx, Kraken, and Kucoin to allow the trading of GRT tokens as well.
During this time, GRT remained the hottest topic on social media. This rage was also seen on the exchanges, so much so that GRT recorded more volume than the world’s largest cryptocurrency, Bitcoin, on the San Francisco-based Coinbase.
Over the weekend, GRT’s volume leveled with Bitcoin on Coinbase at $400 million, only to surpass it soon after.
But all this FOMO led the prices of GRT to drop soon, today; it is down 19% while trading at the $0.427 level continuing its descent from yesterday. Santiment noted,
“GRT displayed a textbook example of what happens when the crowd gets euphoric about an asset in unison. The result is typically an unintentional pump and dump.”