Gaming Crypto WAX Spikes 75% on E3 News As Bitcoin Loses $8,000 Footing
WAX (WAX) spiked to the tune of 75% on Saturday, defying the crypto market dip that removed Bitcoin from its $8,000 footing.
Despite a significant pullback, WAX remains well up for the day. It’s sudden move may be in anticipation of its upcoming mainnet launch – a catalyst I suggested could move the WAX price earlier in the month.
However, Saturday’s spike might be more related to a recent teaser by the WAX team that a big partnership is due. Apparently all will be revealed when WAX attend the E3 tech conference in Los Angeles next week.
E3 – Partner Imminent?
As per Friday’s official blog post, WAX announced their attendance at the upcoming E3 event, and promised some big news. From the blog:
“Team WAX is attending E3, the world’s premier event for computer and video games and related products, in Los Angeles next week along with an exciting new partner! Who? Stay tuned for the announcement next week. Trust us, it’s a good one ;)”
Twitter was awash with chatter amid the pump, with one user even suggesting WAX had just been bought up by a private investment fund. I can find no official mention of this anywhere else, although such factors have definitely moved coin prices in the past.
On top of all this, there’s only a few weeks to go before the launch of the project’s blockchain mainnet. This will see the token leave its current home on Ethereum and become its own independent blockchain.
And looking back at recent coverage, we see why this may be so interesting for investors. The mainnet launch will bring with it the activation of staking rewards which promise to bring in 100% gains over a three-year period.
Obviously that’s a big promise involving big numbers, and one can’t help but view it with some skepticism. Staking cryptocurrency can be a profitable venture, but locking up your funds on a blockchain for any great length of time requires faith in the stability of the project.
From the daily low of $0.079519, the value of one WAX token jumped to $0.139577 in the hours after the E3 announcement was made.
That 75% peak didn’t last long, and by the time the token had fallen back to the $0.11 range, it was still boasting close to 40% gains for the day.
As was the case with the Jelurida ‘altcoin family’ pump recently, the source of WAX’s pump seems to have been Korea. Over 60% of WAX’s trade volume came from Upbit on Saturday, mostly via the WAX/KRW pair.
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. Chart via CoinMarketCap.