Phoenix Global’s token went up 5600% in just four minutes – but there’s a problem – News Couple

Phoenix Global’s token went up 5600% in just four minutes – but there’s a problem

It took just four minutes for a relatively unknown cryptocurrency to surge more than 5,600% as of November 5, according to data from CoinMarketCap.

The token, dubbed Phoenix Global (PHB), rose from $0.02057 to $1.1413 on Friday, with its volume surprisingly dropping from $3.79 million to around $777,680 in the same period.

Phoenix Global (PHB) price movement for the last 24 hours. Source: CoinMarketCap

However, the core of the massive PHB pump was a symbolic transition and a technical flaw.

Fake PHB Pump?

In detail, Phoenix Global announced in September that it will switch its enterprise decentralized application solutions from Neo Blockchain to Binance Smart Chain (BSC). By doing so, the team also proposed migrating the original NEO-based PHX to PHB, a standard BEP-20 token, with “rename” set at 100:1 (100 PHX = 1 PHB).

The said migration began on November 2 and effectively reduced the supply of Phoenix Global’s official tokens from around 3.5 billion to 35 million. Meanwhile, the decision resulted in the new PHB coins trading 100 times higher than the dollar price prior to the swap.

This sparked chaotic calculations at CoinMarketCap, as it began comparing the value of the old coins to the new ones while dealing with its supply cap of 3.5 billion. As a result, this has led traders to believe that the PHB market valuation has grown 56 times in less than five minutes, reaching $4.24 billion to become the 52nd.

“The project underwent a rebranding process, which affected the largest market pair by volume on a single exchange,” CoinMarketCap explained in a private comment.

Phoenix Global (PHB) market capitalization performance in the last 24 hours. Source: CoinMarketCap

Just a glitch, after all

The cost of purchasing a PHB token did not increase as expected. Conversely, the coin fell more than 32% to $0.947 after debuting on Binance on November 5, as shown in the chart below.

PHIB/USDT daily price chart. Source: TradingView

Earlier this year, a technical glitch in CoinMarketCap also pushed encapsulated Bitcoin, a cryptocurrency that acts as a mirror of Bitcoin within the Ethereum ecosystem, to the top cryptocurrency spot.

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