An Ethereum Gaming Altcoin’s Price Explosion and Subsequent Retracement
An Ethereum gaming altcoin called Yield Guild Games (YGG) experienced a significant surge in price before undergoing a retracement. This surge was attributed to a series of large transactions made by whales who sent their YGG tokens to crypto exchanges.
Key Points:
- YGG’s native token rallied from $0.18 to nearly $0.75 in just one week, marking a 317% increase.
- However, the price of YGG has since dropped by almost 50% from its peak and is currently trading at around $0.376.
- The volatility in YGG’s price on Monday was preceded by whale transactions involving Wintermute, Youbi Capital, and Sfermion.
- Wintermute moved around 13.6 million YGG to Binance and Kraken, while Youbi Capital transferred approximately 5 million YGG to Binance.
- Sfermion claimed 1.2 million YGG and deposited it to Binance via the FalconX trading platform.
The Potential Impact of Depositing YGG Troves to Crypto Exchanges
Since the YGG tokens were deposited to crypto exchanges, there is a possibility that they may be sold on the open market. Yield Guild Games allows users to stake YGG tokens, purchase in-game currency, invest in virtual NFTs, earn other altcoins, pay service fees, and participate in the group’s governance.
Hot Take:
The surge in price followed by the retracement of YGG highlights the volatile nature of the cryptocurrency market, especially when influenced by large transactions from influential players. It serves as a reminder for crypto investors to carefully consider the potential impact of such transactions on the market before making investment decisions.