The price of the cryptocurrency BOB doubled in a single day. Traders rushed to the coin following news of its addition to the South Korean exchange Bithumb. The price is now at $0.225. Is this the peak or is there more to come? Read on below.
Price Surge of Over 100% #
The crypto market rallied, but today’s standout was the cryptocurrency BOB. The price of BOB rose by over 100% in the past 24 hours, from $0.01 to a peak of $0.0243 at the time of writing.
BOB stands for Build on Bitcoin. The project aims to build a bridge between Bitcoin and DeFi projects on Ethereum. It uses new technologies (such as zero-knowledge proofs and BitVM) and also adds the ability to ‘stake’ bitcoin (locking bitcoin in a smart contract for returns).
Addition to Bithumb #
The reason for the price surge is the addition of the coin to the South Korean exchange Bithumb. Such a listing offers favorable prospects for the price because it means exposure to a new market with new buyers. Speculators therefore rushed to the coin when the news broke, causing the price to rise even before the official listing.
‘Buy the Rumor, Sell the News’? #
However, it remains to be seen whether the rally will continue. Recently, other cryptocurrencies also experienced significant price surges due to listings on Bithumb, but shortly after they were actually added, no further rise occurred and the price crashed instead.
This is often because speculators invest based on ‘buy the rumor, sell the news’. They invest in advance based on positive news and sell when it actually happens to cash in the profit. Some analysts therefore warn that the party is almost over and a price drop is imminent.
$BOB has been added to Bithumb. Usually, coins tend to fully retrace after a listing.
However, trading is still heavy, with a trading volume of €70 million, ten times higher than yesterday. On the Dutch exchange Bitvavo, BOB is also popular and ranks in the top three fastest risers today.