The trading price of the altcoin SNM has skyrocketed. Coin rose over 750 percent to $10.91, while 24-hour trading volume was just over $720 million. The altcoin’s sudden price surge has sparked speculation that the altcoin is being targeted by a pump and dump group. Because the coin is currently trading at $1.27 levels.
Binance dominates altcoin trading volume
SNM, an altcoin that previously traded for just over a dollar on April 30, 2021, first gained attention with more than 4,000 gains on November 20. It then rose to an all-time high of $10.91, as we reported on Cryptokoin.com. Thus, it experienced a 75-fold rise. According to Coinecko data, SNM’s trading volume dropped slightly in the 24-hour period.
Prior to the altcoin’s latest price and trading volume surge, SNM debuted in 2017 with an initial coin offering (ICO) price of $0.16. The SNM has only been sold for over $0.50 three times on August 26 ($0.503), September 12 ($0.707), and September 12 ($0.517). The data also shows that the volume of transactions increased during the same periods.
With a circulating supply of 44.4 million tokens, the altcoin is listed on five exchange platforms, but data shows that Binance accounted for more than 99 percent of SNM’s trading volume on November 20.
What’s behind the rise?
On Twitter, some users said that the altcoin’s activity points to a pump and dump scheme. Therefore, he guessed that the dump could indicate that it is on the way. Indeed, the coin is currently back to the $1 levels. Chinese cryptocurrency correspondent Collin Wu wrote:
A contra trade involving stolen coins or a lack of liquidity due to market makers’ withdrawal? I am not sure.
Not sure if it is a contra trading involving stolen coins or a lack of liquidity due to the withdrawal of market makers.
— Wu Blockchain (@WuBlockchain) November 20, 2022
Another user, Andrew Sun, argued that the altcoin’s sudden price and increase in trading volume could be an indication that an identified group has chosen to use SNM for pump and dump purposes. “A pump and dump group chose him,” Sun tweeted. He said such groups often find dead coins. He pointed to projects with low liquidity and those that do not offer a perpetual futures contract that would allow humans/bots to 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
Usage area of SONM
So, could SONM’s use case have led to the rise in the coin? Sonm provides distributed customer-level hardware-based cloud services, including computers, mining equipment and servers. Users can rent your hardware. He can use someone’s computing power for his needs. The SNM token is an internal currency in the Sony computing power market. With SNM, users can access resources provided by Sonm.
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