Little-Known Cryptocurrency Surges 80% While Bitcoin Flounders
By CCN: Monacoin bills itself as Japan’s first cryptocurrency, and it’s gained significantly during the recent bull market activity. The cat meme cryptocurrency surged more than 80% in just 24 hours, leaving it with a per-token value of more than $2. Previously, Monacoin’s price was closer to $1.
The rally came even as the Bitcoin price struggled to regain momentum after a sizable sell-off.
Japanese Crypto Traders Drive Demand for Monacoin
Nice $MONA pump today after its listing on @coincheckjp #Monacoin is not listed on @binance and many other big international exchanges, except @BittrexExchange
Japanese investors don’t care as the equivalent of USD 140 million changed hands on @bitbank_inc only !
Go Mona !
— Oliver 90210 (@oliver_90210) May 31, 2019
One bit of news driving the pump is the announcement that Mona will be trading on Japan’s Coincheck exchange. Mona is not available on major exchanges like Coinbase or Binance. The majority of its 24-hour volume took place on Bitbank in the yen market.
Over $140 million is reported as having changed hands in that market alone. Mona trades on just one “major” exchange – Bittrex, whose MONA/BTC market showed more than $6 million over the 24 hours.
A couple of months ago, a boy was arrested for stealing millions of yen worth of the crypto token.
If Japanese investors continue to drive interest in Mona, more significant exchanges may want to get in on the action, especially Binance, which has risen to prominence through having a massive variety of tokens and cryptocurrencies.
Monacoin previously pumped in April by around 40%. In some respects, you can view it as a Japanese Litecoin. Functionally, it’s very similar to Bitcoin, with a mining network and proof-of-work security. It’s a bit faster than Bitcoin, by design, as many cryptos are.
As of the time of writing, Monacoin traded at $2.11 for a 24-hour gain of 89%, launching its market cap to $139 million.
Monacoin – Japan’s Litecoin?
If one day of trading can bring it over $2, it may have a future. If increased adoption in Japanese markets and interest from those traders pushes it higher, it’ll find its way onto more crypto exchanges. The more exchanges it trades on, the better its price will have a chance to pump, as regular Monacoin traders take their time to adapt to the new world.
While it’s not unusual to see a pump of this size in a single little-known and illiquid cryptocurrency, the bull run will only intensify this trend. If people believe they can get some utility in a given altcoin, they’re likely enough to start using it as well as Bitcoin when they get started.
Chains like Bitcoin Cash, Litecoin, Monacoin, and others have the perception of being cheaper and, therefore, less risky. They also have the advantage of ample space and speed at confirmations. These issues will become increasingly important as interest builds in Bitcoin and other cryptocurrencies: Will those blockchains be able to withstand a massive influx of people?
It’s one of the only questions that matter. A mass adoption event has yet to take place, but it’s certainly far from impossible. When we see this much money pour into an ordinarily-quiet market, we have to wonder at what stage of the run we’re truly in.
Disclaimer: This article is intended for informational purposes only and should not be taken as investment advice.
About The Author
P. H. Madore
P. H. Madore has written for CCN since 2014 and is currently Head of Crypto. Please send breaking news tips or requests for investigation to [email protected] His website is http://phm.link
This article was edited by Josiah Wilmoth.