Traders Surprised as Forgotten Altcoin IoTeX Explodes Out of Nowhere – Here’s Why

The recent 20% price surge for IoTeX (IOTX) in the last 24 hours appears to be largely driven by speculation rather than fundamentals. While the IoTeX network has solid technology for enabling decentralized apps and IoT devices, there have been no major project updates or partnerships announced that would justify this kind of overnight price movement.

The trading volume also spiked significantly alongside the price rise, over $69 million in 24 hours compared to averages around $15-20 million. This suggests a frenzy of speculative trading activity rather than organic growth based on the project’s core value. Sharp spikes in trading volume like this are often seen during “pump and dump” schemes where coordinated groups attempt to artificially inflate prices.

Additionally, IoTeX’s market cap remains quite small at around $180 million. Smaller market cap coins are susceptible to manipulation by “whales” with large holdings. These big holders can coordinate buying to drive up prices and create hype, enticing regular traders to buy in and boost prices further. Once momentum stalls, the whales sell off their holdings and capture profits, leaving regular traders holding the bag.

While IoTeX has potential in the long run, this recent price action has all the hallmarks of a classic pump driven by speculation and manipulation. Prudent investors should be wary of chasing short term price spikes like this without significant project-related developments. Until IoTeX can demonstrate real world adoption and deliver on its blockchain vision, major price swings are likely the result of trading games rather than lasting value creation.

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Torsten Hartmann
Torsten Hartmann

Torsten Hartmann has been an editor in the CaptainAltcoin team since August 2017. He holds a degree in politics and economics. He gained professional experience as a PR for a local political party before moving to journalism. Since 2017, he has pivoted his career towards blockchain technology, with principal interest in applications of blockchain technology in politics, business and society.