Groestlcoin (GRS), a lesser-known cryptocurrency created in 2014, has seen a surprising 74% price surge over the last 24 hours. This is despite the fact that the Groestlcoin project has been fairly stagnant in recent years, with little active development or community engagement.
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The reasons behind this sudden pump are not entirely clear, but some crypto market observers believe it may be the work of pump and dump groups. These groups often target smaller cap coins with low liquidity and try to artificially inflate the price before dumping their holdings for a profit.
Groestlcoin is the perfect target for pump and dumps as it’s a relatively inactive coin that new and inexperienced traders may not be familiar with. Whales likely accumulated GRS tokens ahead of time before engineering this temporary price pump.
Other analysts point out that Groestlcoin offers little in the way of technological innovation or advantages over other cryptocurrencies. The project has not seen a code update in over a year, and the developer team is no longer active.
There seems to be no fundamental reason why Groestlcoin should see this kind of short-term price movement. The price surge appears to be the result of manipulation by large token holders performing a pump and dump scam.
While the Groestlcoin pump may make for quick profits for some traders, analysts caution that pumps of inactive coins are often followed by steep dumps once the pumps lose momentum. Traders should exercise caution trading such coins to avoid being caught up in the price manipulation.
