SNM’s altcoin price suddenly surged over 4,000% to $10.91 on November 20, while the coin’s 24-hour trading volume stood at just over 720 million. dollars. The sudden surge in the price of the altcoin has fueled speculation that the altcoin is the target of a “pump and dump” group.
Binance Dominates Altcoin Trading Volumes
SNM, an altcoin, which had only traded above one dollar on April 30, 2021, rose more than 4,000% to $6.70 – a new all-time high – on November 20). According to coingecko.com, in just under 24 hours, SNM’s trading volumes grew from just over $1.2 million on November 19 to over $720 million.
A dead shitcoin that had an ICO in 2017, SNM, suddenly surged nearly 20x on Binance tody. Its official website has not been updated for a long time. The coin is almost exclusively tradable on Binance, but Binance did not delist it. https://t.co/TSaEM36GLg
—Wu Blockchain (@WuBlockchain) November 20, 2022
Prior to the latest surge in the altcoin’s price and traded volumes, SNM, which debuted with an initial coin offering (ICO) price of $0.16 in 2017, was only sold above 0 $.50 only on three occasions, namely August 26 ($0.503), September 12 ($0.707) and September 12 ($0.517). The data also shows that traded volumes also spiked during these same periods.
Although the altcoin, which has a circulating supply of 44.4 million tokens, is listed on five exchanges, data shows that Binance accounted for more than 99% of SNM’s traded volumes on November 20.
Pumping and Dumping Claims
On Twitter, some users speculated that activity in the altcoin could indicate that a pump and dump system is underway. Chinese crypto journalist Collin Wu tweeted:
I don’t know if this is a counter trade involving stolen coins or lack of liquidity due to withdrawal of market makers.
Another user, Andrew Sun, argued that the sudden spike in the altcoin’s price and traded volumes could indicate that an identified group has opted to use SNM for pump and dump purposes. Sun tweeted: “A pump and dump group chose it. They often find dead parts. Those that have low liquidity and don’t have a perpetual contract that will allow people/robots to get short on them to do their pump and then dump.”
A pump and dump group has chosen it. They often find dead coins. Ones with with low liquidity and without a perpetual contract that will let people/bot go short on it to do their pump and then dump.
—Andrew Sun (@andrewsun_83) November 20, 2022