Phoenix Global Token is up 5,600% in just four minutes, but something is wrong

According to data from CoinMarketCap, it took just four minutes for a relatively unknown cryptocurrency to soar more than 5,600% on November 5th.

The token called Phoenix Global (PHB) rose from $ 0.02057 to $ 1.1413 on November 5, and its volume surprisingly dropped from $ 3.79 million to around $ 777,680 over the same period.

Phoenix Global (PHB) Price movement over the last 24 hours. Source: CoinMarketCap

At the core of the massive PHB pump, however, was a token migration and technical issue that CoinMarketCap has now fixed, with PHB’s price rising modestly by 59%.

A fake PHB pump?

Phoenix Global Token is up 5,600% in just four minutes, but something is wrong
Phoenix Global Token is up 5,600% in just four minutes, but something is wrong

In particular, Phoenix Global announced in September that it would migrate its decentralized blockchain application solutions for businesses from Neo to Binance Smart Chain (BSC). Included The team also suggested migrating its native NEO-based PHX asset to PHB, a standard BEP-20 token, with a “rename” to 100: 1 (100 PHX = 1 PHB).

This migration began on November 2nd and effectively reduced the official offering of Phoenix Global tokens from around 3.5 billion to 35 million. Meanwhile, the resolution resulted in the new PHB tokens trading 100 times higher than the pre-swap dollar price.

This sparked chaotic calculations at CoinMarketCap as the company began comparing the value of old coins to new ones while setting its supply limit at 3.5 billion.. As a result, traders believed that PHB’s market valuation had increased 56 times in less than five minutes, reaching $ 4.24 billion to become the 52nd largest cryptocurrency.

“The project had been renamed, and this affected the market pair with the highest volume on an exchange,” explained CoinMarketCap in private comments.

Phoenix Global (PHB) market capitalization performance over the past 24 hours. Source: CoinMarketCap

It’s just a mistake

The cost of buying a PHB token did not go up as advertised. In contrast, the token fell after its debut on Binance on Dec.

PHIB / USDT daily price chart. Source: TradingView

Earlier this year, a technical bug at CoinMarketCap had also put Wrapped Bitcoin, a cryptocurrency that acts as a mirror for Bitcoin within the Ethereum ecosystem, at the forefront of cryptocurrencies.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade move involves risk, you must do your own research when making a decision.

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