In many cases, the crypto market is described as crazy due to its very high volatility compared to the rest of the other financial markets.
Within the crypto market itself, there is the DeFi market, which is more insane as a currency rises from scratch, to reach record levels, and may continue to rise or fall and return to where it came from.
The rise of a digital currency in decentralized financing from $ 2 to $ 200 in a short period:
Those who go into the crypto market and its projects have certainly come across the "Ampleforth" project, which is characterized by dynamic and not static supply and supply like other digital currencies.
Ampleforth aims to provide a dynamic supply protocol aimed at achieving balance once the network is used by a sufficient number of participants.
In the past few months, we have seen a lot of changes in the mechanisms of the “Ampleforth” protocol, all of which are supposed to improve the project.
Several projects have also emerged that aim to imitate “Ampleforth” and compete with it for what it offers.
Among these projects is a project called "DSTRA" that provides a digital currency called "DST". According to the publication "Medium", the project provides a digital currency with a decentralized algorithm inspired by another protocol called "Basis".
The DSTRA project has an initial supply of 10,000 DST, which changes every 6 hours, with a maximum of 250,000 DST.
The basic explanation for the coin is that every six hours, a new era begins during which the bid is recalculated based on the current price, which has a perpetual target of $ 1.
In other words, if the price is higher, the supply expands, and if it is lower, it stays the same based on what users do with their digital currencies.
This is how the chart looks less than a few days after the official launch:
As the chart above shows, the price rose from around $ 2 to a high of around $ 200 and then returned to $ 2 in less than 17 hours.
It's really hard to justify such behavior in the market with whatever protocol mechanism is in place.
The madness continues:
Pumps and dumps of this kind are not strange or anomalous in the fledgling DeFi market, with some traders making crazy gains while most of them suffer huge losses.
Before writing about this digital currency, its Telegram group was operating normally and then it disappeared and became non-existent.
Before closing the project, a group official shared the following comment:
It's been two days since the successful launch of the dynamic rendering, which coincided with a major market correction.
However, we are still here, preparing several version updates.
Finally, we are in the process of testing an update to minimize price manipulation and manipulate the revaluation time.
It is true that the market went through a short correction process, but such a large decline of 97.5% does not seem normal and the only logical explanation for this dramatic decline is whale manipulation.
However, the DST crypto project is not the first and last to have suffered from such a scenario.
Therefore, every time in Bitcoin, we warn Arabs of the necessity of caution and caution when undertaking and investing in new crypto projects, because of their high risk.