Red arrows on weekends are the norms since 2022 started and we are all accustomed to it. After the year the crypto space had in 2021, its no shock that things have gone on a downward spiral and prices are beginning to slash by two. The more logical reason for this is probably inflation which happened last year and a price correction has been what has been taking place of late.
Well, inflation has not only been the reason in my books as other issues have arisen that caused the dip in value. one was when the internet shut down in a particular country that was said to be the second-highest mining country in the world. other news has been U-turns by top countries saying No to Crypto and BITCOIN at large.
When this part few weeks has followed the dip trends during the weekend but this week is different as a massive pump in value of the crypto market is currently being experienced. The market is currently at $1.9 billion according to Coingecko and that's a big leap from where it was just six hours ago.
The reason for this pump could be associated with the introduction of the new coin called APE. I have not really given it a good read of what the use case could be but I believe that it is associated with the popular NFT project BoredApe. I can not even say that it is a great coin or a bad one as I have no in-depth knowledge about the project.
The coin is worth around $16 for 1 and it shows the rate at which people are buying the coin and that in a way affected the value of Ethereum the most. Eth remains the only coin that could be used to purchase the coin and that has seen ETH break the 3k mark for the first time this month.
While the whales are pumping money into this new coin, it's only a matter of time before the law of diminishing returns sets in. Also, the whales would likely take profit soon thereby crumbling the price of the APE coin and the market in the process. This would likely play out like BITCOIN and many other overhyped tokens in the past.
While this coin might be different, it is important that one does not FOMO and ape into buying the $APE coin. Before investing make sure you do your right research and also invest with your spare funds and not all your funds. this way you are sure that even if things go bad, you have something to fall on.
Cryptocurrency remains a very risky investment and its risker in this period as more fake projects are more rampant than even the original projects. Even the real projects as failed to rise or moon as expected and the noise of crypto is not how it use to be anymore as we live in an uncertain world at the moment.
The drums of world war three continue to sound higher as the war between Ukraine and Russia continues to have a military war. This has seen crypto questioned on the role it has played in making some people avoid sanctions imposed on them. This is not to scare anyone but to ensure that one is investing money he could afford to lose in these times.
Thanks for reading and I appreciate feedback about the post or my writings in general
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