Did a cryptocurrency just rally 4,00,00,000% to become 4th biggest digital asset?2 min read . Updated: 16 Jun 2021, 04:32 PM IST
- According to the experts, the price of the token may have seen a surge due to an error on the CoinMarketCap’s website.
The cryptocurrency market is known for its unpredictable nature, and this is evident from the returns given by some of the tokens, which range from a few hundreds to even thousands. But in a bizarre instance, which has put returns given by even Dogecoin and Shiba Inu to shame, crypto token PRiVCY, which trades with the ticker symbol PRIV, surged more than 4,00,00,000% in a day.
According to the data available with cryptocurrency tracker CoinMarketCap.com, the price of PRIV surged to $3,563.70 on 14 June from $0.008814 on 13 June, showing a rise of 4,04,32,166.84%.
At the current price of $3,600.80, PRIV commanded a market capitalization of more than $59 billion, making it the fourth-biggest cryptocurrency in the world.
However, according to the experts, the price of the token may have seen a surge due to an error on the CoinMarketCap’s website.
“There is a token called PRIV and there is an index, which goes by the similar name. The error I think came from using the unit price of one and the number of units of another asset and multiplying it to get the market cap. The two assets have got merged, and I am sure, CoinMarketCap will rectify it soon," said Ajeet Khurana, founder, Genezis Network, a think tank for crypto startup investments.
According to the token’s website, PRiVCY coin is a peer-to-peer cryptocurrency and can be termed as a modified version of the technology on which bitcoin was built.
The other asset is an index for privacy coins (PRIV-PERP), which tracks the price of a basket of privacy coins.
Privacy coins are a class of cryptocurrencies that power private and anonymous blockchain transactions by obscuring their origin and destination.
There are two aspects to the trading of PRIV. First is the trading in perpetual futures of the index (PRIV-PERP), which is happening on FTX, and other is that this index has merged with the price of PRIV coin.
PRiVCY token is listed for trading on two exchanges, Crex24 and StakeCube, and it is still trading in the $0.006341-$0.0072 range, while index PRIV-PERP is trading on FTX exchange, with the price around $3,600 level.
“If you look at the spot market on CoinMarketCap.com, the price of PRIV token is quite less, but the price of the index (PRIV-PERP) is quite high in terms of perpetual futures. PRIV is a coin, which is trading on two exchanges, but PRIV is also an index, which is trading on FTX. There is an error on CoinMarketCap.com, under which, both the tickers have combined, because of which one can see the higher price. In reality, the price of PRIV token is not high, both are different things and because of the error, it is reporting the meteoric rise incorrectly for PRIV token," said Naimish Sanghvi, CEO, Coin Crunch, a cryptocurrency media outlet.
Moreover, the price of PRIV token was $0.00800372 on another crypto price tracker CoinGecko.
In the recent past, there have been many instances, where a crypto saw a sharp spike in a matter of minutes. One such example is Dubaicoin, which surged 1,000% on false claims of being official cryptocurrency for the city of Dubai. These claims later were later dismissed by the government of Dubai as an elaborate phishing campaign designed to steal personal information.
Investors should keep in mind that investing in cryptocurrencies is highly risky, and they should go through the websites and white papers before investing in an unknown crypto token.
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