This anonymous cryptocurrency only takes 4 minutes to gain over 5,600% – Why?
It took just four minutes for an anonymous cryptocurrency to surge more than 5,600% on Nov.5, according to CoinMarketCap.
Dubbed Phoenix Global (PHB), the token jumped from $0.02057 to a peak of $1.1413 on Nov.5 while its volume plummeted worrisomely – from $3.79 million to around $777,680 in the same time period.
PHB/ USD chart. Source: CoinMarketCap
The core issue of the massive PHB pump was token migration and a technical glitch, which CoinMarketCap fixed with the PHB price now up a relatively modest 59%.
Specifically, in September, Phoenix Global announced that it will be porting its enterprise decentralized application solutions from the Neo blockchain to the Binance Smart Chain (BSC). At that time, the team also proposed to convert its NEO-based native asset PHX into PHB, a BEP-20 standard token, with the ratio set at 100:1 (100 PHX = 1 PHB).
The migration began on Nov.2 and effectively reduced Phoenix Global’s official token supply from around 3.5 billion to 35 million. Meanwhile, the move made the new PHB trade 100 times higher than the pre-swap price.
That caused chaos in CoinMarketCap’s calculations as it began comparing the value of the old coins with the new coins while considering their supply cap at 3.5 billion.
Thus, this leads traders to believe that PHB’s market valuation has increased 56x in less than 5 minutes, reaching $4.24 billion to become the 52nd largest cryptocurrency.
“The project has undergone a new renaming and this affects the highest volume market pair on an exchange.”
PHB market cap performance. Source: CoinMarketCap
In fact, PHB fell more than 32% to $0.947 after launching on Binance on Nov. 5.
PHIB/USDT 1D chart. Source: TradingView
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