Phoenix Global token soars by 5,600% in just four minutes — But there’s a catch

It took simply 4 minutes for a comparatively unknown cryptocurrency to rise by over 5,600% as of Nov. 5, based on information from CoinMarketCap.

Dubbed Phoenix World (PHB), the token soared from $0.02057 to as excessive as $1.1413 Friday, with its quantity surprisingly dropping from $3.79 million to round $777,680 in the identical interval.

Phoenix World (PHB) value motion within the final 24 hours. Supply: CoinMarketCap

Nonetheless, on the core of the huge PHB pump was a token migration and a technical glitch.

Pretend PHB pump?

Intimately, Phoenix World introduced September that it could shift its enterprise decentralized software options from the Neo blockchain to Binance Sensible Chain (BSC). In doing so, the workforce additionally proposed emigrate its NEO-based native asset PHX to PHB, a BEP-20 normal token, with a “redenomination” set at 100:1 (100 PHX = 1 PHB).

The stated migration commenced on Nov. 2 and successfully lowered Phoenix World’s official token’s provide from round 3.5 billion to 35 million. In the meantime, the decision led to the brand new PHB tokens buying and selling 100 instances increased than the pre-swap greenback value.

That triggered chaotic calculations at CoinMarketCap, for it began evaluating the worth of previous cash with the brand new ones whereas treating their provide cap the identical as 3.5 billion. In consequence, it led merchants into believing that PHB’s market valuation had grown 56 instances in lower than 5 minutes, hitting $4.24 billion to grow to be the 52nd largest.

“The mission had undergone a re-denomination, and this affected the biggest quantity market pair on one trade,” CoinMarketCap defined in personal feedback.

Phoenix World (PHB) market cap efficiency within the final 24 hours. Supply: CoinMarketCap

Only a glitch, in spite of everything

The fee to buy one PHB token didn’t develop as boasted. Quite the opposite, the token dropped by greater than 32% to $0.947 after debuting on Binance on Nov. 5, as proven within the chart beneath.

PHIB/USDT every day value chart. Supply: TradingView

Earlier this 12 months, a technical glitch on CoinMarketCap had additionally pushed Wrapped Bitcoin, a cryptocurrency that acts as Bitcoin’s mirror inside the Ethereum ecosystem, to the highest crypto spot.

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