The significant price increase of EGLD (Elrond) by 60% within 24 hours, with the majority of its trading volume coming from Upbit, a South Korean crypto exchange, raises questions about potential manipulation and market dynamics. Here are some key points to consider:
1. **Price Discrepancy:** EGLD is trading at a higher price on Upbit ($55) compared to other exchanges where it's around $52. This kind of price discrepancy can be an indicator of market inefficiencies or potentially speculative trading.
2. **Upbit's Influence:** Upbit has been associated with pumps of other tokens in the past. The fact that a significant portion of EGLD's volume is coming from Upbit might raise concerns about whether this price increase is driven by the exchange's activities.
3. **Whale Activity:** The involvement of big whales purchasing EGLD to arbitrage on Upbit can contribute to the price increase. Arbitrage trading seeks to profit from price differences across different exchanges.
4. **Volatility Warning:** The note of caution at the end is valid. Sudden price surges, especially when associated with a single exchange, can result in increased volatility. Traders and investors should be cautious, and leveraging such situations can be risky.
It's essential to conduct thorough research and exercise caution when trading or investing in cryptocurrencies during periods of rapid price fluctuations, especially when such fluctuations are tied to specific exchanges. The sustainability of the pump and its underlying reasons may not always be clear, and markets can be unpredictable.
