DigixDAO (DGD) Goes Nuts on Binance: 55% Spike as Rumours Circulate
DigixDAO trading exploded on Binance on Monday, as the Malta based exchange processed more DGD trades than the coin had recorded in the entirety of the previous ten months.
The DGD coin price is up 55% over 24 hours, and with no official announcements, landmarks or launches to point to, there’s nothing left but rumours – both positive and negative.
DigixDAO Pump: Investors Buying In?
One suggestion put forward by a user on r/digix points to a recent post by investment firm Palm Beach Research Group, which mentioned Digix as a possible investment option. The post focused on stablecoins, and touted Digix as a unique competitor in the field.
Palm Beach does advertise crypto-based investment products, although the website gives no details as to how much DGD the products contain, if any.
The website does attract over 400,000 readers a month (according to a free browser plugin), but that gives no indication as to the number of investors, nor the percentage of those investors who would have pulled the trigger on a Digix recommendation. Ultimately, this theory appears to hold little water at the moment, and should be chalked up to hopeful speculation.
DGD Dump On the Way?
The DigixDAO mainnet launched towards the end of March, and resulted in a short-lived 20% price pump which lasted just two days before a complete reversal. Perhaps we’re seeing something similar with DGD this time around.
This is pure speculation of course, and says nothing about the genuine investment potential of DigixDAO, which was already up over 50% for the quarter before today’s pump. Social media chatter has suggested an impending pump and dump, or even insider trading based on some upcoming event. However, manipulation is a danger for all cryptocurrencies, especially coins with low trade volume like DGD.
Speaking of volume, after recording daily trades as low as $90,000 in recent months, Monday’s trade volume spiked to $20 million – the highest in almost a year. Over 75% of that volume came from the DGD/BTC pair on Binance – a trusted exchange but not one completely above suspicion.
Digix Price – DGD/USD
From the daily low of $25.38 the value of DGD shot up to $39.56 by Monday evening, marking 55% growth, and exploding past weekly, monthly and quartlerly highs in the process.
That takes DGD to a new six-month high, as it returns to a price point not witnessed since November 10th, right before the entire market plunged on the commencement of the Bitcoin Cash hash wars.
The launch of the Digix mainnet a few weeks ago could still be driving interest in DGD, which can now be earned by submitting proposals to the Digix community. With that said, beware this previously low volume coin at its current price, especially as it has already gone up and down dramatically in the past few weeks.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.