Eternal Token (XET) Spikes Again; ETH Trades Push Coin Price Up 108%

Eternal Token (XET) grabbed headlines in late September when it came out of nowhere on the back of 3,190% monthly growth, and pushed its way into the market cap top one-hundred in the process.

But after a 60% decline in the following month, the little known ERC-20 token is on the up once more, this time recording a 108% spike on Thursday before a subsequent pullback.

ETN/USD

With no obvious catalysts making themselves known at the fundamental level, it appears XET was rocked by a technical play on Thursday morning.

The 60% price slide which hit XET from September through October culminated in a drop from $2.43 to the $0.91 range – which it reached just moments before the spike.

Traders found the $0.91 range more attractive, and by just one hour later, the coin price surged to 108% growth, and a valuation of $1.88. That was before a pullback dropped the valuation back down to the $1.30 range just as suddenly.

XET trade volumes quadrupled during the sixty minute spike, from $200,000 to $800,000, and over 77% of that came courtesy of the XET/ETH pair on the IDAX exchange. XET only has two pairs to its name – ETH and BTC – and the dominance of Ether trades in this instance is a relatively rare occurrence.

There is an easy-to-spot pattern when it comes to XET’s crazy growth spurts, namely that each of its last two spikes followed periods of low trade volume. It’s assumed that markets become easier to manipulate when volume declines, and XET has demonstrated that better than most. The last two growth spurts were triggered within a day or so of the token’s volume dropping to the $160,000 mark, from a daily average of around $500,000.

What is Eternal Token?

Eternal Token (XET) is a proxy token for the purchase of another coin – Eternal Coin (XEC).

According the project’s whitepaper, XEC can only be traded on authorized exchanges in the Philippines, Hong Kong and Korea. Since XEC can only be purchased on such exchanges, XET was created to give investors the chance to buy into XEC by proxy. XEC is then used to process fast, trackable, transactions worldwide.

All of this amounts to something that sounds a lot like the service offered up by Ripple and XRP. Eternal Coin is created by the Japanese firm, Atom Solutions Co, Ltd, and can be swapped out for XET at a 1:10 ratio.

According the token’s ethplorer page, just five accounts hold 50% of the XET token supply, while ten accounts hold 71.25% of the overall total. That’s from 8,844 addresses at time of writing, and unless one of them turns out to belong to the IDAX or Sistemkoin exchange, then XET could be one of the most poorly distributed tokens in existence.

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.

Author:
Greg Thomson is a freelance writer who contributes to leading cryptocurrency and blockchain publications like CCN, Hacked, and others.