The price of the SNM altcoin, surged by 4,545% on 21 November. The alt was seen exchanging hands at $10.91 — its all-time high. The altcoin’s trading volume rose from $1.2 million to $720 million in the span of just one day.
This sudden rise in fortunes cannot be easily explained, given that this phenomenon was taking place amid a crypto market crash following FTX’s collapse. In related news, SNM had only previously traded above $1 on 30 April, 2021.
The market capitalization of SNM rose from ~10 million to more than $472 million within 24 hours. Its trading volume rose from $1.2 million to $720 million within the same time period, and above $0.50 on rare occasions. Data also suggested that over 99% of SNM’s trading volume of 20 November was transacted on Binance.
It’s a pump and dump for SNM?
SNM had been ranked at number 218 in terms of market cap. Besides, its official website hasn’t witnessed any updates since a very long time now.
The sudden surge in the fortunes of SNM amidst a crypto crash was being attributed to various ulterior motives.
Furthermore, Chinese crypto journalist Colin Wu called it a “dead shitcoin,” while mentioning that the coin was almost exclusively tradable on Binance.
Not sure if it is a contra trading involving stolen coins or a lack of liquidity due to the withdrawal of market makers.
— Wu Blockchain (@WuBlockchain) November 20, 2022
Mr Peanutbutter, a Twitter user, responded, “Pump & Dump group making the most of those scamcoins from BSC that got a free pass to Binance back in the days.” He added that such items should be “cleaned for a Binance regulatory compliance.”
Pump & Dump group making the most of those scamcoins from BSC that got a free pass to Binance back in the days.
Such CZ skeletons should be cleaned for a Binance regulatory compliance, many people were scammed by this *looking away* policy
— Mr Peanutbutter 🇫🇷 (@Alfred_Dulaire) November 20, 2022
This could also be due to a lack of liquidity caused by the withdrawal of market makers. It will allow a trader to significantly increase the price of a token with far less capital than is required for price movements of tokens with greater liquidity.
At press time Bitcoin [BTC] was down by 25% and was trading at $16,086.99. Ethereum [ETH] was trading at $1,119.35, after plummeting by 33%.