Free Coin (FREE) Raises Red Flags amid Pump
A little-known asset lined up among the most active gainers as altcoin rallies renewed, but FREE comes with warnings.
Free Coin (FREE) managed a spectacular pump on relatively small volumes, exploding on November 5 from $0.000003 to $0.000021 and rising more than 700% in the past seven days.
This new arrival on the crypto scene has barely a month of trading. The current pump is happening on 24-hour volumes of less than $5,000.
FREE is up 44% in the past day alone and is also extremely volatile. The pump is concentrated on Mercatox, where the final price is set by a trading anomaly. The extremely thin FREE/BTC market, with a volume of just $87, bid the asset up to $0.000065.
FREE was another relatively unknown coin until the pump almost pushed it into the top 100 of digital assets. This Ethereum-based token is owned by 4,533 addresses, with more than 70% of the supply held by Top 10 addresses. There are, however, red flags suggesting that FREE may be a risky asset.
With a shoddy website and a social media profile focusing on gains, FREE looks like a coin that relies on shilling and listings. The project aims to reach $1 prices for FREE while expanding the coin’s adoption.
Currently, there are just around 2.7 trillion coins in circulation out of a total supply of 10 trillion. FREE’s ambitions of achieving a $1 price are outlandish: there are only 1.4 trillion US dollars in circulation, and the total supply of FREE could, in theory, be worth half the size of the US economy. What is more worrying is that the asset started off with a low price and may continue offering more coins at an increasing rate. It is still unclear if FREE includes any form of a pyramid scheme, but the rapid and aggressive appreciation and the recent pump point to a project targeting quick gains.
Even more telling is that the FREE Reddit threads include promotions of Initiative Q, a recently circulated scheme offering non-blockchain asset Q with claims of seeking to revolutionize payment systems. Some have suggested this may be a scam operation.
FREE was initially distributed via airdrops and faucets, and the silver lining is the lack of aggressive selling, with a more democratic distribution of coins attempted instead.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.