This week in crypto highlighted significant events: Mantra token crashes due to insider trading allegations, Pi Coin initially rises but faces transparency concerns, Grayscale expands altcoin review, XRP-SWIFT partnership rumors debunked, and the US Dollar hits a three-year low impacting Bitcoin positively. Overall, the market trends showcase both opportunities and risks for investors navigating the crypto landscape.
This week in the cryptocurrency market showcased several significant events that will impact various ecosystems. From high-profile partnerships and investment strategies to controversy and reactions, the following summarises the key happenings in the crypto space.
The price of the Mantra token plunged by 90% this week due to allegations of insider trading and liquidity issues, resulting in over $5.5 billion evaporating from its market value. Investigations revealed concentrated trading patterns and minimal liquidity levels, making it susceptible to significant losses. An aggressive trader’s actions led to a chain reaction of liquidations, emphasising the vulnerabilities present in low-float tokens during turbulent market conditions.
Pi Network’s Pi Coin experienced substantial growth early in the week, credited to a critical partnership with Chainlink. However, this surge was short-lived as market confidence waned. Comparisons were drawn between Pi Coin and the now-defunct OM token, raising concerns about transparency in token supply and control, thus highlighting potential regulatory risks in the sector. Within days, Pi Coin dipped 18%, trading at $0.6112, reflecting a lack of clarity around its fundamentals.
Institutional interest in altcoins is rebounding, with Grayscale announcing its review of 40 assets for possible inclusion. This renewed focus aims to diversify beyond Bitcoin and Ethereum, aligning with emerging trends in the crypto market. Notable tokens under consideration include SUI, STRK, TIA, JUP, and MANTA. However, inclusion in the review does not assure a fund launch, merely indicating ongoing research by Grayscale on evolving market dynamics.
Speculation regarding a partnership between Ripple’s XRP and SWIFT circulated during the week. This narrative was sparked by a misinterpreted document and amplifying social media posts, yet was debunked by thorough investigations. No formal collaboration currently exists, although both entities have shown interest in blockchain solutions. The unconfirmed rumours did, however, ignite discussions around XRP’s sustainability and utility as the Ripple project continues to navigate regulatory challenges.
The US Dollar Index (DXY) recently recorded a three-year low, influencing the cryptocurrency landscape. A declining DXY typically benefits Bitcoin, and this week, BTC rose above the $84,000 mark. The dollar’s decline is tied to concerns over US fiscal health, while the global M2 money supply is on the rise again, particularly in Europe and Asia. A favourable macroeconomic environment for Bitcoin is emerging due to weakening fiat currencies and increasing liquidity conditions that support risk assets like cryptocurrencies.
