On a bearish day in the crypto market that was marred by a weak debut to spot Bitcoin and Ether ETFs in Hong Kong and data that reinforced expectations that the Fed will wait longer before cutting interest rates, traders looking for quick gains are flocking to on-chain shitcoin markets as they hunt for top crypto gainers today.
The new crypto ETF launch in Hong Kong attracted only $11 million in first-day trading volumes. Some had been expecting as much as $300 million in first-day trade.
Hong Kong ETH and Bitcoin ETF launch in 1 picture.
$300 million “anticipated” volume
$11 million actual volumeThis has got to be one of the worst predictions of all time. pic.twitter.com/7WfwzSylTE
— WhalePanda (@WhalePanda) April 30, 2024
Meanwhile, data out of the US showed hotter-than-expected wage pressures in Q1, which could complicate the Fed’s inflation fight.
US Employment Cost Index Q1: 1.2% (est 1.0%; prev 0.9%)
— LiveSquawk (@LiveSquawk) April 30, 2024
Bitcoin (BTC) slipped briefly below $60,000 and hit its lowest level since February.
Ether (ETH), meanwhile, was probing sub-$3,000 levels and eyeing a test of earlier monthly lows.
With the rest of the altcoin market a sea of red, traders flocked to the on-chain markets, where newly launched tokens are always pumping.
On-Chain Markets Explained
On-chain markets refer to the market for digital assets that have been issued and trade directly on the blockchain.
For example, the world’s second-largest meme coin Shiba Inu (SHIB) is an ERC-20 token issued directly onto Ethereum.
Shiba Inu can be traded directly on the Ethereum blockchain using decentralized exchanges (DEX) like Uniswap.
Newly launched shitcoins and meme coins can also be traded in the exact same way.
Indeed, new coins are always popping up, and these coins frequently post fast exponential gains.
That’s because the shitcoin market is highly illiquid, with a small amount of buy/sell pressure able to produce outsized moves.
The prospect of making quick 10x or more gains is a key reason why on-chain shitcoin markets attract so many investors.
But traders need to be cautious as most as scams. There is next to no barrier for anyone to issue their own token.
Scammers take advantage of this, issuing worthless coins but tricking investors into buying them nonetheless.
Scams can take the form of rug pulls (where a project is abandoned and liquidity abruptly pulled) or pump-and-dump schemes.
Alternatively, scammers might insert malicious code into a contract to create unfair trading conditions.
Here are some top crypto gainers today on Ethereum that traders will be monitoring, as per DEXScreener.
Top Crypto Gainers Today
Elon (ELON)
A relatively new Elon Musk-themed meme coin Elon (ELON) is pumping on Tuesday, as per DEXScreener.
https://twitter.com/Elon0x69420/status/1785006681350402072
The token has pumped 225% in the past 24 hours to a market cap of $23.2 million. And it last has $1.0 million in locked liquidity.
As per Go+ Security, ELON has two concerning aspects to its smart contract. Investors should note that ELON is probably just another pump-and-dump with no long-term value.
America (AMERICA)
After a strong first day of trade on Monday, meme coin America (AMERICA) has continued its bullish momentum into Tuesday.
The token has reportedly already donated $10,000 to veterans.
🚨BREAKING: $AMERICA (@0x1776America) on ETH has Officially Donated $10,000 to Veterans in the First 24 Hours of Launch!
Support this amazing team BELOW! 🇺🇸
ca: 0x1776B223FF636D0d76aDF2290821f176421DD889 pic.twitter.com/KefPhZ94Hj
— Donald J. Trump 🇺🇸 News (@DonaldTNews) April 30, 2024
As per DEXScreener, AMERICA was last up 200% in 24 hours and trading with a market cap of $1.4 million.
The token has $130,000 in locked liquidity, reducing rug pull risk. It also has a great ratio of rocket emoji’s to red flag or shitcoin emoji’s on DEXScreener.
That suggests it is popular in the community. Still, like ELON, it’s probably just another pump-and-dump meme coin.
Traders shouldn’t invest more than they can afford to lose.
Monke (MONKE)
A meme coin called Monke (MONKE) is up 75% in the past 24 hours, as per DEXScreener.
https://twitter.com/MonkecoinERC/status/1784512469479870974
The coin launched four days ago, but has struggled to break out of a $0.0006-$0.002 range.
Its market cap was last $1.4 million, with $250,000 in locked liquidity.
The meme coin has 230 rocket emojis, but 103 red flag emojis on DEXScreener. It only has two concerning aspects to its smart contract.
But like most newly issued coins, it’s probably just another pump-and-dump.
Better Alternative to Shitcoins
As noted numerous times already, shitcoin markets are highly risky.
Investors looking to take on substantial risk for big upside potential should instead consider presale investing or ICOs.
Web3 projects/protocols often raise funds via an early bird sale of their native tokens to power development.
Of course, presale investing isn’t without risks. Projects can fail to deliver on their vision for all manner of reasons.
But if investors are able to reliably identify good projects, presale investing can be hugely profitable.
Analysts at Cryptonews spend a lot of time combing through the market. Here are their best picks for 2024.
20 Best Crypto Presales to Invest In
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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