Dragon Coin (DRG) Explodes with 151% Daily Growth; Quick Rundown
Dragon Coin (DRG) entered the market cap top 100 on Friday, after 151% growth in less than 24 hours which cemented 202% growth for the week.
Market cap data only became available in the past day, and shows Dragon Coin boasting a market cap of $42 million. But the price of each DRG token during the ICO was $3 – a far way off today’s $0.12.
With $320 million raised via ICO according to ICOBench, just how many people are nursing those heavy losses right now? And do they stand a chance of recovering their investment?
Dragon Coin Fundamentals
Let’s be clear: almost every coin in existence crashes immediately after its ICO; Dragon Coin is hardly unique in that regard. Seen below, DRG embarked on a straight descent after launch in March 2018.
The project describes itself as “The Entertainment Token”. Thus far we’ve seen some activity on the entertainment front – particularly the sporting arena. Dragon Coin’s website details recent partnerships with numerous sporting figures and organizations, including a Tokyo 2020 Olympic athlete and a Formula E race team.
Much of the documentation refers to casinos, and the potential of the gambling market in Asia, and particularly Macau. The roadmap declared an ambition to have the DRG token installed in a mainstream casino in Macau by the end of 2018, however there is no sign that this actually came to pass. The documentation for the token sale stated:
“Dragon Coin, or DRG, is an ERC20 / Ethereum Utility token used to participate in the Dragon blockchain ecosystem… and thereafter on cryptocurrency exchanges, by investors & casino players in order to participate at Casinos using Dragon’s Blockchain facilities managed by Dragon partner junkets.”
Dragon Coin is currently represented on four exchanges: Liquid, Sistemkoin, HitBTC, and IDEX. On Friday, August 30th, daily trade volume stood $100,000. Strangely enough for a small altcoin, 13% of that sum came from a fiat pairing against the Turkish lira (TRY).
The team has a strange mix of characters, from crypto-Twitter influencers to a former anti-terrorist specialist who worked for the likes of Heckler and Koch.
Based on an initial first glance, I see a lot of talk about potential, and lots of marketing material, but nothing that tells me Dragon Coin is any different from the thousands of other coins with similar use-cases.
The source of its recent pump remains a mystery. The DRG coin price surged 151% on Friday, climbing from $0.080329 up to $0.202102.
By time of writing the price had dropped back down to the $0.12 range. As observed in Dragon Coin’s active markets, a huge spread currently exists between the four exchanges it’s listed on.
It’ll be interesting to see what happens to Dragon Coin now that it has popped up on CoinMarketCap’s front page. If you’re still holding Dragon Coin from 2018, please comment below.
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. Charts via CoinMarketCap.