PumpETH price prediction: Billion-percent gains spark fears

Unnatural chart movements and negative social media coverage make red flags for PumpETH

Illustration of a masked man in black hiding behind smiley face, with another man handing over money                                 
Anonymous projects are often misleading – Photo: Shutterstock
                                

Contents

PumpETH, an anonymous rebasing cryptocurrency, has seen massive price gains by its BEP20 PETH token that are raising fears of possible price manipulation and pump-and-dump trading techniques. 

What is rebasing?

According to Coin Market Cap, “a rebase (or price-elastic) token is designed in a way that the circulating token supply adjusts (increases or decreases) automatically according to a token’s price fluctuations”.

PumpETH’s rudimentary white paper bills itself as an “automatic rebasing token” providing 4% in ETH rewards to token holders. Using simple economics, PumpETH’s logic revolves around reducing token supply at a preset cycle to send the token price drastically higher over a short period of time.

But logic also denotes that value must come from somewhere. Take, for instance, a Ponzi scheme. Ponzi organisers rely on bringing new investors into a project, thus maintaining a constant flow of new money to those at the top of the pecking order. Although Currency.com is not suggesting that PumpETH is a Ponzi scheme, it is possible that PumpETH generates FOMO (Fear Of Missing Out) among investors drawn to the project’s seemingly impossible upward price swings.

PumpETH and DumpETH

To get an idea of the wild swings in value this token goes through, in the 24-hour period 18-19 January 2022, PumpETH went from $0.0000000005928 to $0.00736 as a token burn kicked in, equating to a 1,241,570,000% increase.

cap.com
Previous price swings were larger still

Of course, this value was not sustained as the rebase algorithm kicked in, with the price returning to $0.000000000632 shortly after. So far, similar price fluctuations were observed on 4, 7 and 12 January, and 12 September 2021.

Graph showing PETH’s dramatic price swings
PETH’s dramatic upswings always come crashing down. Photo: Currency.com

The dumps occur at fairly strict price points, previously at the $0.503 and $0.403 marks. This suggests that the burns and sell-offs are governed by an automated, algorithmic process.

A quick glance through the social media channels yields many posters commenting on coins disappearing in the billions, sometimes trillions. Readers are advised to peruse the Reddit channel here.

Theoretically, losing coins is normal in rebasing economics; value is determined by market capitalisation. A developer of a rebasing coin would suggest that charting activity is irrelevant. But as evidenced by user comments, these supposed gains have not been realised. Furthermore, there is no available data to determine whether market cap rose concurrently with the recent price pumps.

PumpETH liquidity

Over 20% of liquidity is unlocked, according to Market Move’s analysis. This means that liquidity suppliers may pull out a significant sum of liquidity from the pool, leaving other holders unable to execute a swap. The precise amount of liquidity on PancakeSwap could not be determined, but many users have commented on their inability to exchange their held PumpETH tokens, suggesting a true lack of liquidity.

Screenshot of Market Move’s zero audit score
Market Move’s audit yielded a 0/100 score – Photo: app.marketmove.ai

Market Move also suggests that ownership of the token contract has not been renounced, thus owners may alter core aspects of the contract for the benefit of themselves, while leaving others high and dry.

Screenshot of Market Move’s audit
Code analysis suggests the contract owner can alter key addresses – Photo: app.marketmove.ai

Despite these many red flags, PumpETH gained a successful audit from InterFi Network in December 2021, according to GitHub documents. A request has been sent to InterFi Network for greater insight into its auditing procedure.

Currency.com always recommends that you research a cryptocurrency project before buying. Remember, just because a token is trending, that does not make it a genuine article.

Who are the developers of PumpETH?

This could not be determined. The pumpeth.com domain details use the Namecheap privacy service. No developer details can be found online. Although remaining private is not in itself a sign of a scam, transparency always contributes to the legitimacy of a project.

Can we make a PumpETH price prediction?

Given the issues discussed above, it is not exactly possible to determine a PumpETH coin price prediction. Theoretically, should the automated pump-and-dump procedure enter another cycle, it could shoot up to $0.403 or $0.503 once, with a swift reversal, perhaps due to certain holders unloading their supply.

There is no forecaster data available to make a PumpETH price prediction for 2022, a PumpETH price prediction for 2025 or a PumpETH price prediction for 2025.

With that said, Currency.com cannot recommend investing in PumpETH. However, please conduct your own research and make your own PumpETH price prediction should you wish to come to your own conclusion. Remember, Currency.com is not your financial adviser. This PETH price prediction article is intended to give you neutral facts to make up your own mind.

FAQs

The circulating supply of PumpETH is continually changing as tokens get burned and generated by a rebasing algorithm. Because of this, the circulating supply cannot be determined.

There are many red flags surrounding the PETH token, and many online commentators have mentioned monetary losses. While a specific value of these losses cannot be determined, Currency suggests caution with PumpETH.

Due to its rebasing algorithm, PumpETH will probably go up considerably, followed by a swift reversal. Few investors will be able to determine an accurate buy and sell trigger.

Currency.com cannot recommend investing in PumpETH. But should you be curious, it is advised to research the social media channels and online presence to come to your own conclusion.

Further reading

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image