- LOOM surpassed Bitcoin in trading activity for a brief period.
- The sudden increase in value raised concerns about market manipulation.
Loom Network [LOOM] rose to its highest market value in more than five years as investors struggling with the bear market rushed to get their hands on the cryptocurrency.
Is your portfolio green? View the LOOM Profit Calculator
LOOM recorded a meteoric rise of 746% over the past month, beating the competition to emerge as the best performing asset on the market, data from CoinMarketCap revealed. The crypto was also the biggest gainer over the past 24 hours, with gains of almost 10%.
According to a recent post by on-chain analyst Maartunn, LOOM has even eclipsed the world’s largest cryptocurrency by market cap: Bitcoin. [BTC]in trading activity for a short period on October 15.
The trading volume for $LOOM exceeds that of $BTC 🤯 pic.twitter.com/iYI8plcMKe
— Maartunn (@JA_Maartun) October 15, 2023
LOOM wakes up from his sleep
Loom Network is a layer 2 scaling solution launched in September 2018. The project is based on the delegated proof-of-stake (PoS) mechanism and supports Ethereum [ETH]Binance chain [BNB]and Tron [TRX].
The native token LOOM is an ERC-20 token, used to secure the network and as a hosting fee for decentralized applications (dApps).
However, the project has come off the boil in recent years and there is nothing significant to brag about in terms of ecosystem developments. Even the 2021 bull market didn’t take the token to the highs you’d expect.
Source: CoinMarketCap
Is something strange going on?
Apparently that’s the project Official Page on social platform
Therefore, it could be assumed that market forces were solely responsible for LOOM’s recent moves. But then the sudden increase in value led to concerns about market manipulation.
A Bitcoin investor, going by the pseudonym TheWignus on X, claimed that the recent price increases of certain cryptos, including LOOM, were not organic. However, they have not provided any evidence to support the claim.
Suddenly #PUMPs or manipulation takes place #assets with an increase of more than 50-100% in 48 hours. 🚀💸#OOKI#ALPACA#LOOM#BOND#TRB#GFT#LQTY#UFT#RPL#PNT
— TheWignus (@TheWignus) October 15, 2023
Schemes such as pump-and-dumps are quite common not only in the crypto markets but also in traditional financial markets. It happens when a person or group starts artificially inflating the price of an asset by spreading positive news around it.
Read Loom Network’s [LOOM] Price forecast 2023-24
Once unsuspecting investors are lured in and the price is ‘inflated’ enough, holders start dumping their assets at a profit. This causes the price of the asset to plummet, and new investors are stuck with an asset with a low value.
Therefore, traders have been advised to be cautious and consider several aspects before deciding to invest their money in rising assets. Think of DYOR.