Crypto token appreciation has been observed in the case of the CYBER token, a lesser-known cryptocurrency. The token has experienced significant growth in recent weeks, with traders willing to pay high fees of up to 2,000% annualized to buy the tokens on margin. However, there is a risk of being caught out, as most market pumps are quickly sold in a generally bearish environment. Despite this, niche token pumps continue to occur in the crypto world, regardless of Bitcoin’s movement.
One example of this crypto token appreciation is the CYBER token of CyberConnect, a “Web3 social network.” With a market cap of $113 million, the token has more than doubled in the past week, making it one of the biggest jumps in an otherwise flat market. Trading volumes have also increased significantly, with $225 million worth of tokens exchanged in the past 24 hours, compared to $30 million just a day before.
High fees for CYBER tokens on margin
Traders are so eager to get involved in this crypto token appreciation that they are paying over 2000% to buy the tokens on margin. However, CyberConnect runs the risk of becoming the latest crypto fad. Similar projects, like Friend.tech, experienced a surge in popularity only to see revenue drop by 95% in just over three weeks.
CyberConnect allows developers to create blockchain applications related to digital identity, content, and friendships. It offers features like CyberGraph, a smart contract to record users’ content and social connections, and CyberID, an ERC-721 token representing a unique handle for user accounts within the CyberConnect ecosystem.
Funding rates soar for CYBER tokens
Funding rates, which are periodic payments traders make to their counterparties on perpetual futures markets, have soared to as much as an annualized 2,190% on platforms like Bybit and Bitget, and up to 1,500% on Binance. These rates are determined by the difference between spot and futures contract prices. Positive funding rates for CYBER indicate a bullish sentiment among speculators, with long traders paying out.
Most of the trading activity is happening on Binance, accounting for 74% of all CYBER volume. The Korean exchange UpBit follows with $70 million worth of tokens traded.
Friend.tech’s rise and fall
Friend.tech launched on Aug. 10 and gained popularity as personalities outside the crypto world joined the platform. It accumulated around 4,400 ETH (about $8.1 million) in trading volume on the first day. However, transactional activity on the platform peaked at $16 million on Aug. 21 before dropping to just over $700,000. New users have stopped joining, although active usage remains consistent over a weeklong period.
Conclusion
While the CYBER token’s recent crypto token appreciation is notable, it is essential for investors to be cautious about getting caught up in the hype. As seen with similar projects like Friend.tech, a sudden surge in popularity can quickly be followed by a significant drop in revenue and user interest.
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