- CyberConnect price is up 740% in the last week and 230% in the last 24 hours on Upbit exchange against BTC.
- The current open interest for CYBER is $200.69 million, with up to $4.6 million in short positions liquidated.
- The surge is due to traders in Korea, which points to an impending fall as is characteristic of pump and dump activities.
CyberConnect (CYBER) price has recorded a remarkable rally over the past week, outperforming even the crypto top-10 like Bitcoin (BTC) and Ethereum (ETH). A closer look at the uptick indicates that it is the works of Korean traders, notoriously famous for pumping and dumping.
Also Read: Breaking: Ripple files opposition to SEC’s motion to certify interlocutory appeal.
Korean traders pump CYBER token
CyberConnect token price is up close to 740% in the last week and almost 230% against Bitcoin (CYBER/BTC). Interestingly, however, the value of the token is lower on Binance at around $9.7 and other exchanges in the US but higher on Upbit, recording almost $15.0 against the Dollar (USD) at press time.
#PeckShieldAlert $Cyber #Upbit #bithumb pic.twitter.com/xeBqsMtfCa
— PeckShieldAlert (@PeckShieldAlert) September 1, 2023
Upbit is a South Korean cryptocurrency exchange and the largest in the South Asian region in terms of trading volume.
The surge aligns with up to $200.69 million in open interest, showing the expansive CYBER contracts that remain open.
CyberConnect open interest
Open Interest, funding rate FAQs
How does Open Interest affect cryptocurrency prices?
Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of an increase in efficiency, and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.
How does Funding rate affect cryptocurrency prices?
Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.
However, the surge saw up to $4.6 million in short positions liquidated as the stop losses of the traders who had taken short positions on the altcoin closed automatically. Meanwhile, only $806,510 long positions were liquidated. This combines to a total of almost $5.5 million in total liquidations.
CYBER liquidations chart
As shown in the chart below, CyberConnect price is $0.00115076 against BTC, with a long candlestick on September 1. While this is attractive to the eyes, a stark drop could be imminent, considering Korean traders are likely the ones fueling the uptrend.
CYBER/BTC 1-day chart
Korean traders in action
Korean traders are infamous for pump and dump schemes, a stealth strategy where the traders select assets carefully. Citing an expert from local newspaper Korea JoongAng Daily:
“The liquidation of contracts for differences (CFD) — a leveraged derivative that dumps shares at the opening price if deposits fall below a certain percentage — may have accelerated the plunge and caused a snowballing of damage.”
For the layperson, a CFD is a derivative product where a trader can trade live market prices without owning the asset itself.
Some of them trade through matched orders, such that brokers sell the assets at a pre-determined time and price to another broker, making it look like a normal trade. In turn, this injects apparent volatility into the asset involved. With the right amount of money, it becomes an obvious win kind of scenario.
They go as far as gathering “investors” to o increase their funding. The purported investors, who are just manipulators, could be high-net-worth individuals like celebrities.
The traders often take their time to gradually pump asset prices using matched orders and evade financial regulation monitoring by executing the trades in different locations and under different IP addresses. With the asset’s trading volume and profit growing, more unsuspecting “investors” step in, entrusting their finances to the group. Eventually, even retail traders wishing to jump on the hype increase.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
![Ethereum has lost its “ultra” sound money status, faces key rectangle resistance hurdle](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Ethereum/Ethereum_Coins_31_03_XtraSmall.jpg)
Ethereum has lost its “ultra” sound money status, faces key rectangle resistance hurdle
Ethereum is up 0.5% on Thursday following a recent analysis showing that the top altcoin lost its "ultra" sound money narrative. Meanwhile, ETH ETFs recorded net inflows for the first time after nine days of consecutive outflows.
![Solana bears dominate market as SunPump has potentially led to less demand for SOL](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Solana/Solana_Crypto_31_XtraSmall.jpg)
Solana bears dominate market as SunPump has potentially led to less demand for SOL
Solana is down 2.5% on Thursday following bearish signals across its funding rate and total fees captured. SOL's weak performance could also be linked to the declining traction seen in its meme coin generation platform Pump.fun.
![AI tokens see narrow gains as Wall Street banks raise price targets on NVDA](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/PEPE/PEPE_coin_2_XtraSmall.jpg)
AI tokens see narrow gains as Wall Street banks raise price targets on NVDA
AI tokens NEAR, ICP, RENDER and TAO briefly traded in the green on Thursday following Wall Street banks' positivity toward Nvidia's earnings report. While a correction followed, these tokens could rally if NVDA meets expectations.
![XRP back above $0.57 even as Ripple traders take $8 million in profits](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/cryptos_XtraSmall.jpg)
XRP back above $0.57 even as Ripple traders take $8 million in profits
Ripple (XRP) traders have consistently taken profits on their holdings in the last two weeks, per Santiment data. Once again, traders have grabbed $8.36 million in profit so far on Thursday. Typically, profit-taking negatively influences the asset as it increases the selling pressure.
![Bitcoin: Will BTC continue its ongoing decline?](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoin_5_XtraSmall.jpg)
Bitcoin: Will BTC continue its ongoing decline?
Bitcoin (BTC) trades above $59,000 on Friday, but it has lost 7.5% this week so far after being rejected around the daily resistance of $65,000. The decline is supported by lower demand from the US spot Bitcoin ETFs, which registered a net outflow of $103.8 million, falling Bitcoin's Coinbase Premium Index, and a spike in Network Realized Profit/Loss. However, some investors seem to be taking the chance to buy BTC amid this price dip, as shown by the Exchange Netflow data.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.