In a flash, Ampleforth, yet another DeFi project vying for its share of the booming market, just experienced a 700,000% pump on crypto platform FTX.
Minutes later, the asset crashed right back down a full 99.99%, leaving some traders scratching their heads, and a lucky few wealthy.
During the 2017 cryptocurrency hype bubble, it wasn’t uncommon for altcoins to rise 10,000 to 100,000% in value against USD and Bitcoin.
Bitcoin itself over the decade-plus of its existence has grown over 100,000,000% in ROI for the earliest investors.
In both instances, cryptocurrencies made early investors who were ahead of the trend wealthy beyond their wildest imagination.
Related Reading | Be Wary Searching For The Next DeFi Star Warns Crypto Advisor
Today, however, one DeFi focused altcoin called Ampleforth, flash pumped by over 700,000% in a one-minute candle against USD. The altcoin spiked from under $2 per token, to $13,400 per AMPL at the high.
DeFi tokens are high-flying lately, but nothing like this. The pump even took the crypto asset beyond the price of Bitcoin the leading cryptocurrency by market cap.
Minutes later, it was all gone as the altcoin fell 99.99% back to where it started.
The flash pump happened on the FTX cryptocurrency derivatives trading platform that has recently gained popularity for its exotic contracts.
Ampleforth AMPLUSD 1M Flash Pump | Source: TradingView
Flash crashes are rare but do occur with some level of frequency in the crypto market. Flash pumps, however, are a much stranger anomaly.
Most assets have experienced a flash crash at one point or another. Bitcoin has done it, and there are live recordings of Ethereum flash crashing on Coinbase to nearly a $1 years ago. Chainlink notoriously flash crashed during Black Thursday on Binance to nearly zero. The asset is now setting all-time highs over $8 per token.
These moments stick with traders and investors and remind them to set stop losses and to keep position sizes meager to prevent extreme loss in the event of something like this taking place.
Related Reading | Link Cryptocurrency Flash Crashed 99% After Market Tanked, to 0.0001
Flash pumps are a lot more welcome for traders, as there’s a chance they could get rich off the lightning-fast mishap.
Anyone who happened to have a sell order on Ampleforth for over $10,000 per token, would have had them fill, even if the order was put there as a “joke.” Occasionally, some traders leave extremely high or low orders set just in case this happens. Or, perhaps they catch the moment unfolding live as past videos have shown, and use it to their financial advantage.
Those who get lucky and buy or sell and asset during one of these flashes can become rich beyond their wildest imagination in just a couple of clicks.
Published at Fri, 24 Jul 2020 17:00:24 +0000