The Green Satoshi Token was Up by a Suspicious 450% last month- is it a sign of a scam? This article covers the story so that you can make informed investment decisions.
When a particular token starts to do too well after trading in the red for so long, it can be a cause for celebration or a sign of a scam. Yesterday, the Green Satoshi Token of Stepn, dropping sharply and going from $10 to $0.03, saw a sudden uptick by 450% – hinting at a short-squeeze. Few whales are rallying behind it to drive up the prize, indicating a major scam because the retrace afterward was as fast as the uptick.
Why do we believe that the 450% uptick is suspicious?
It is not uncommon for a cryptocurrency is suddenly reverse direction and quickly switch to bullish sentiment. And to the first-time watchers, the recent rise of GST might mean exactly that, a happy rise.
“Perhaps the crowd was finally understanding the value of the token and rallied behind it,” – many might think. However, these “uncommon” situations happen to tokens with strong fundamentals. People firmly believe in this crypto asset, and often the sign is seen as positive.
However, it is too soon to count the Green Satoshi Token as one of those assets. For one, this cryptocurrency is inflationary. That is, its supply is unlimited – meaning that it can become unsustainable down the line. Secondly, a major bull rally often has signs, which has not been the case with Green Satoshi Token.
After showing multiple red candles in late July, the GST started to paint long green engulfing patterns. The hourly rise was enough to scare many. It worried us because the token is inflationary. And modern trends say that people are driving away from such tokens because they tend to become unsustainable in the long run.
They remind us of the case of Axie Infinity. The gaming ecosystem’s SPL token was retraced by more than 90% because the earnings became unsustainable as more players started to join in.
Whatever the case, the GST has retraced and is trading sideways between $0.05 and $0.06.
Tamadoge is a better and deflationary Move-to-Earn option
Inflationary cryptocurrencies have their perks. They’re tied to the movements of the general currency market and are a good way for beginners to get acquainted with the crypto ecosystem.
However, when there are too many players, the inflation can bubble, and the token can become hyperinflationary. We have all witnessed it in the case of Terra when the total number of LUNA ballooned to the extent that the entire crypto ecosystem crashed.
That is why most new cryptocurrencies are deflationary. Their supply is burned popularly to maintain the scarcity and manage the price. And when you have a cryptocurrency that has proven to have an excellent use case and is deflationary, investing in them is a no-brainer.
That is why Tamadoge is one of our top cryptocurrencies to invest in right now. It is a deflationary token powering a play-to-earn ecosystem. With the arrival of an Augmented Reality Game net year, players can walk around and earn rewards through their Tamadoge pets.
The token is currently undergoing its presale phase and has raised upwards of $2 million within the first 16 days.
Green Satoshi Token has its perks, and it is a great move-to-earn token. But its inflationary nature limits how much earnings you can draw from the ecosystem. Tamadoge, on the other hand, being deflationary, has major upside potential once it gets listed on CEX.
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Source: https://insidebitcoins.com/news/green-satoshi-token-was-up-by-a-suspicious-450-before-retrace-sign-of-a-scam