Electroneum (ETN) Price Leaps 38% in Hours, But is it Built on Empty Volume?
The Electroneum coin price increased by over 38% on Friday, returning the cryptocurrency to the top hundred ranked coins ranked by market cap. But given that most of ETN’s daily volume came primarily from crypto exchanges known for inflating their volume, it’s hard to see ETN remaining atop the market charts for too long.
Electroneum Price Pumps 38%
Electroneum started climbing early on Friday morning as it rebounded from a weekly, monthly and yearly low of $0.004962, eventually reaching a peak of $0.006878 by the afternoon. That’s a new weekly high for ETN, and not far from the monthly high in the $0.0069 range.
Electroneum had lost almost 30% of its value in the past two weeks, and on Friday all of those losses were returned in just a few hours. CoinMarketCap reports trade volume of $1.4 million for ETN, with nearly 80% of that sum coming from Huobi and Kucoin.
And that might be an issue in itself, particularly as these exchanges are thought to fake between 80-95% of their trade volume. In fact, none of Electroneum’s daily volume for Friday came from a single exchange listed among Bitwise’s list of trusted platforms.
Looking back at the past quarter’s performance for ETN, we see a coin that hasn’t been stable in a long time. Weekly swings of 20-40% have been common for ETN since January. There’s a theory that these swings are initiated by the exchanges themselves, for their own benefit – either to attract more signups or to sell off their token reserves for a higher price.
What is Electroneum?
Electroneum is a project based out of the United Kingdom, and it arrived with a bang when it launched in late 2017. Electroneum claimed 20,000 miners within hours of launch; 140,000 holders, and 400,000 wallet downloads.
The hard cap of $40 million was reached fairly quickly during the ICO, and Electroneum even enlisted the help of a national celebrity in the form of former football manager, Harry Redknapp. The former coach of Tottenham Hotspur sent a now deleted tweet where he urged his +200,000 followers to ‘get in’ on the upcoming Electroneum ICO.
The project launched with the intention of being an attractive currency for miners, and was configured to be mined using basic hardware such as a Blackberry Pi. As the bear market took hold in 2018, the value of Electroneum dropped by a factor of forty – dropping from $0.23 down to $0.004.
That $0.004 valuation was hit just this morning, as Electroneum fell to a belated all-time low. This may also explain the strength of ETN’s rebound on the day. One obvious upside is the prospect of a $100 investment turning into $4,000 if ETN ever returned to its all-time high, however given the lack of presence on trusted exchanges, that would be a riskier bet than most altcoin prospects.
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.
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