The nearly abandoned governance token of ConstitutionDAO, $PEOPLE, mysteriously rallied over 70% recently, reaching $0.03 after months of minimal trading activity. However, multiple warning signs suggest the pump is unsustainable and the price could crash again soon.
Brief History of ConstitutionDAO
ConstitutionDAO formed in 2021 as a decentralized autonomous organization with the goal of crowdfunding to purchase a rare copy of the U.S. Constitution at auction. Despite raising over $40 million worth of Ethereum, ConstitutionDAO lost in the final bidding to billionaire Ken Griffin.
After the failed auction, ConstitutionDAO dissolved and refunded donations. The $PEOPLE token price crashed from highs of close to $0.20 down to below $0.008, SInce then it began to trade sideways.
Descending Channel Breakout
Some optimistic observers have noted the breakout from the long-term descending price channel as a potential bullish signal. For example, The Crypto Express tweeted that a retest of $0.015 could provide bullish confirmation.
However, the history of manipulation and lack of development activity around ConstitutionDAO suggests this breakout will ultimately fail.
Warning Signs Point to Further Crashes
There are several warning signs indicating the 70% pump is likely just another bubble driven by short-term speculation and manipulation:
The Experiment Has Concluded
ConstitutionDAO already refunded donations from its failed auction attempt in late 2021, so there is no clear fundamental reason for investors to re-enter the $PEOPLE token.
Evidence of Manipulation
A 700% intraday spike yesterday that completely retraced suggests coordinated pumping. And DAOscope noted 5 whales owning 50% of supply.
Lack of Development
With the project finished, no further development justifies substantial investment demand for $PEOPLE, making the breakout unsustainable longer-term.
Given these major red flags, traders should exercise extreme caution when evaluating if ConstitutionDAO and $PEOPLE can truly restart its failed mission. The safest assumption is the token lacks fundamentals and backers to prevent another collapse.
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