Over the years, the cryptocurrency space has grown at a frenetic pace and it is still in progress as more tokens come into the market. However, in this regard, it is also important to keep in mind that all tokens might not actually be a sound investment.
There are some coins that might show enormous growth within a short span of time and then retrace the path just as quickly. That is what seemed to have happened with Noah Coin (NOAH), which clearly turned into a single day phenomenon in the exchanges.
Over the course of the past two days, the coin generated enormous gains. The coin in question started its climb even as the biggest cryptocurrency in the world Bitcoin crashed below the $9000 mark. At the same time, other altcoins had also experienced troubles. However, none of that seemed to bother the rise of Noah Coin, as it gained as much as 1000% over the course of 48 hours.
Although it is true that such astronomical gains are not completely unheard of, NOAH’s gains during those 48 hours became a hot topic in the crypto space. That being said, the coin could not sustain the position it had attained in the market and started dropping like a stone.
The decline started from the $0.0003 level and currently, NOAH Coin is on a steady decline. The most surprising bit about the whole thing was the fact that before the spectacular rally started, the coin had a trading volume of a couple of hundred dollars. In addition to that, when NOAH Coin was in the middle of its remarkable rally, it generated trading volumes of $148,874. While this may not necessarily be a case of a pump and dump scam, it is a clear example of the sort of volatile movements that the coins with smaller market caps can experience. More often than not, investors and traders end up losing their money.
Analysts believe that the drop in NOAH was perhaps not because of some sort of scam but because of a token swap that is yet to be completed. The cryptocurrency will need to do a token swap before it can move to a new blockchain as planned. Since the swap has not been completed yet, it might have affected trading capabilities.