S4FE Spikes 273% on Mercatox Listing; But Markets Are Divided on Price

The value of the Ethereum-based S4FE (S4F) token spiked by 273% following its listing on the Mercatox exchange. However, with an arbitrage difference of 485% between different exchanges, it’s hard to know the true value of the token.

In the past twenty-four hours over 750,000 S4F was moved to Mercatox from a small group of addresses, where the token price subsequently soared to almost six times its value on other platforms.

S4FE Pumps on Mercatox Listing

From the daily low of $0.196198, the value of S4FE jumped to $0.733115 on Tuesday morning, marking 273% growth over a few hours. Daily volume more than doubled in that time, from $131,000 up to $275,000. The subsequent pullback dropped the price back down to the $0.48 range.

S4FE was listed on Mercatox on April 22nd, and the token price reacted quickly. Mercatox immediately became the largest processor of S4FE trades, and now hogs over 90% of the token’s daily trade volume via BTC, ETH and TUSD pairs.

The last time S4FE made the pages of Hacked was in late February when the token exploded into the market cap top hundred off the back of 608% growth. That surge eventually went all the way to 1,604% growth, and resulted in an all-time high of $4.26, although the peak was very short lived.

On Tuesday, the difference in the token’s valuation across platforms was such that a 485% arbitrage opportunity presented itself. Given the low liquidity on LATOKEN, it’s unlikely anyone had a chance to take advantage of it. CoinMarketCap hasn’t excluded or corrected these figures at time of writing.

S4FE Tokens on the Move

Over 750,000 S4F landed on Mercatox when trading opened on April 22nd. Much of it was moved from this address, which once held 100,000,000 S4F, or 92% of the entire circulating supply. That address is one removed from this address, which received 1,000,000,000 S4F (the total supply) from the original smart contract address on Ethereum.

That’s not necessarily suspect, however, all of the transactions to Mercatox were first transferred to separate addresses, where the funds waited for a few minutes before being moved again. The signs of someone covering their tracks? Or simply good privacy practice?

I mention it is because there are only 297 addresses listed as holding S4FE – a big increase on the 162 addresses active two months ago. With such a small number of active addresses, we can expect the number of day-traders to be absolutely miniscule. Hence this recent pump can likely be attributed to an early holder of S4FE manipulating the market. Just how early they received the funds is up for speculation.

The S4FE project involves registering private property on the blockchain in order to create a user-run database where people can report stolen goods. Described in official documentation as:

“S4FE is a freely accessible blockchain technology-based global network for the registration, search, verification and identification of property.”

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.

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