A new week begins and comes a new dog-themed coin with astronomical surges that have left investors stunned. Here’s what you need to know before opening your wallet.
Watch out … puppies
At the time of going to press, the market is trending down. But HUSKYX, which skyrocketed after one-day price hikes of around 67,000%, was still on the rise. According to Coin Market Cap, the Binance Smart Chain-based token last hit a price of $ 0.000008594 and rose 357.56% in 24 hours.
The million dollar question for some traders is whether this is a successful new coin or just another “SQUID token?” Well, one way to assess a crypto project is to investigate the date its website was created. According to crypto researcher Max Maher, an old website reports that more time was spent developing the project.
Meanwhile, the HUSKYX website was launched on October 16, 2021.
Watching the community from the room can also be a useful gauge. However, several Twitter users posting the HUSKYX hashtag complained that the tokens they owned disappeared.
– andrew bizy (@Andrewbizy) November 14, 2021
For its part, HUSKYX had a reason for this. The website claimed,
“HUSKYX is a deflationary token, which means the total supply is always down, making it increasingly scarce. Every HUSKYX transaction is taxed and a small percentage of the coins are burned, but holding rewards you at the end.
Adding to the peculiarity of all of this, HUSKYX’s official Twitter account also announced a iPhone price in exchange for an increase in the token’s market capitalization.
– Huskyxfinance (@HuskyX_Official) November 15, 2021
Additionally, the white paper claimed that HUSKYX holders would get ETH rewards.
By looking at Binance Smart Chain data, investors can learn that there are over 6,000 holders and over 51,000 transactions recorded.
Who let the dogs in?
The HUSKYX website celebrated the token listing on CoinMarketCap. This despite the crypto-ranking company’s inability to verify the project’s self-reported market capitalization.
Does this mean that when CoinMarketCap cannot investigate a token’s market cap, it takes the project claim at face value? Additionally, if HUSKYX followed the same path as SQUID, would the company be liable to investors who view the listing as an endorsement of the credibility of the project?
It’s worth noting that in the past, CoinMarketCap has been accused of allowing washout trading – or tolerating platforms that artificially generate high trading volumes to achieve higher rankings.
Remember the red flags
After the carnage of SQUID tokens, Max Maher pointed out the red flags that investors had missed. He also shared some tips for investigating future projects.
Maher advised investors to look for language errors on the website, lack of information on the founding team, poor website design, and lack of technical details in the white paper.