The recovery of blue-chip cryptocurrency markets on Friday following the latest US jobs report has traders seeking opportunities in the highly illiquid and volatile on-chain markets. On-chain markets refer to the market for crypto tokens and assets issued directly on an existing blockchain. One example is Shiba Inu (SHIB), which was issued as an ERC-20 token on Ethereum. Traders flock to these markets for the potential fast exponential gains, but there are risks involved, including the potential for a token to lose all of its value quickly. Most newly launched tokens are either scams or pump and dump schemes, so traders must be cautious and do their due diligence.
Among the top crypto gainers today on Ethereum are Arky (ARKY), a new dog meme coin that claims to be named after the Bitcoin founder’s dog. ARKY is up 15,300% and is one of the top crypto gainers today. The token has a market cap of around $630,000 and has attracted attention from the community, with 82 rock emoji votes on DEXScreener. Another gainer is PEEPO (PEEPO), a shitcoin that has been around for over a year and has recently seen a 320% pump. The token has a market cap of $5.6 million and appears to be trying to make a comeback as a meme coin.
Three Protocol Token (THREE) is another top gainer, with a 100% gain in 24 hours as per DEXScreener. The decentralized marketplace-focused protocol has a market cap of around $28 million and $800,000 in locked liquidity. An alternative investment strategy to consider is investing in crypto presales/ICOs. This strategy can potentially yield even higher gains if executed correctly. Web3 projects often sell their native tokens at a discount to early investors to fund development. Identifying projects with a strong vision, use case, and competent team can lead to significant profits in the presale market. Cryptonews has compiled a list of their top picks for crypto presales to invest in.
It is essential to note that crypto is a high-risk asset class, and the information provided in this article is for informational purposes only and does not constitute investment advice. Investors could lose all of their capital when investing in cryptocurrencies. Traders need to be cautious when entering volatile markets like on-chain markets, where tokens can experience drastic fluctuations in value. Additionally, new tokens often come with higher risks, as many of them turn out to be scams or pump and dump schemes. Doing thorough research and never risking more than one can afford to lose are vital principles for traders in the crypto market.
While the allure of fast exponential gains in on-chain markets is appealing, traders must weigh the risks and rewards carefully before investing in highly illiquid and volatile tokens. The potential for significant losses in a short amount of time is a real possibility in these markets, so caution and due diligence are crucial. Despite the risks, the continuous emergence of new coins and tokens presents opportunities for traders to capitalize on potential gains. By staying informed, doing thorough research, and carefully selecting investments, traders can navigate the crypto market with a greater chance of success. It is important to always consider the potential risks and rewards before entering any investment opportunity in the crypto space.
