Storeum (STO) Shows Crypto Market Not Beyond Pump-and-Dump Activity
The spectacular STO rally on low volumes briefly lifted the coin within the top 30 of assets.
Storeum (STO) pulled a most spectacular pump as the markets recovered on Tuesday. STO showed unusual price action that was deemed inorganic, climbing by more than 9,000 percent since last week. Such pumps are typical of lesser-known coins which aim to gain visibility.
The asset went through two bouts of rapid appreciation, gaining 300% per day easily. STO currently trades at $2.26, and lined up among the top 30 of assets.
The price of STO at $2.26 is a wild anomaly based on a single exchange with a volume of $23,000. The asset otherwise trades thinly at $0.001 on EthFlyer. But the ExtStock exchange pump boosted the coin to an exorbitant level, not even reported on charts.
STO is a token, based on a project promising a decentralized marketplace. The website for Storeum looks like a generic ICO project page, promising a revolution and disruption in peer-to-peer trading. The STO token also appears in airdrops.
The current pump looks like an attempt from the project team to make the asset and the project more prominent. Hence the attempt to lift the price enough, and see the token’s name reflected among top 50 coins and tokens.
It seems the listing on ExtStock was also a concerted event, which preceded the pumps of the past few days. STO has also rallied as a top gainer on CoinMarketCap around November 14. Despite the current market downturn, separate coins and tokens still manage to go through pumps, based on enthusiasm or concerted efforts.
STO is not dumping yet, and may go through other bouts of appreciation. Still, the coin contains risk, as trading on a small, relatively unknown exchange may lead to losses. The low volumes may also disappear just as rapidly as they grew from almost zero.
The top 3 Storeum addresses hold more than 45% of tokens, and the asset is one of the coins with potential “whale” manipulation. The fact that it lines up with older, more liquid assets, is only a temporary event during the highly active pumps.