Cryptocurrencies are volatile assets subjected to fluctuations. Price swings are constant occurrences within the ecosystem. Investors often calculate the investment budget of crypto projects after carefully considering the risk tolerance level.
Aevo was a promising crypto project that gained significant attention within the crypto community after its launch. The project is built on the Aevo chain, which is an Ethereum-based rollup. They have significantly inflated its volume, resulting in the crash of Aevo. Let us learn more about the project and its downfall.
Let us get started:
Aevo: Project Overview
Aevo is a decentralized exchange that combines an off-chain central limit order and an on-chain settlement. The platform focuses mainly on options, pre-launching trade, and perpetual. Aevo was known for its performance, security, low-latency trading, and transparency. The project supports over 5000 transactions every second. AEVO L2 is the custom Ethereum rollup. This helps to conduct different transactions in a single batch. The project was a reasonable solution for investors looking forward to an efficient and affordable platform.
Aevo: Current Status
According to the market experts, the project was inflated by wash trading. As evidence, they have pointed out the activity within the out-of-the-money options. When the clarification regarding this was asked to the Aevo team, they clarified that this increased volume rise might be connected to airdrop farming. Wash trading is the process in which the same person acts like the buyer and seller during a trade. This can create a false sense of activity in the trade. This practice is usually banned in the marketplaces like stocks.
What exactly happened to Aevo?
Aevo surged its value from $100 million to $4.5 billion and within a flash, it had a downfall to square one. This created speculations regarding the rise and fall. Most experts were opinionated that this was due to wash trading. Market manipulation is believed to be the reason behind the crash. When a person acts both as the buyer and seller within a platform, this can create an impression that the project is under increased activity.
Founders Note
After the incident, the founder of the project Julian Koh reacted. He confirmed that some of the users started pumping volumes to $ 1 billion with the hope of getting the most out of the airdrop. He confirmed that the snapshot for the airdrop was taken a week before, so this action could not be counted. Wah trading is completely against the rules of the crypto market.
AEVO: Current Activity
AEVO tokens can be traded on centralized crypto exchanges. The trading volume of the AEVO is $68,606,792 for the past 24 hours. This indicates a decline of 6.20% from the previous day. The decrease in the trading volume indicates a fall in the market activity. The highest recorded price of AEVO is $3.76 and it was recorded on 28 March 2024. Compared to the highest price of seven months ago, now the token has come to a decline of 91.16%. This decline is lower than the all-time high of AEVO. Check out the current performance of AEVO:
Market Cap: $29,1006,423
24-hour Trading Volume: $68,839,800
Total Value Locked: $50,368,397
Circulating Supply: 882,224,129
Total Supply: 1,000,000,000
Max Supply: 1,000,000,000
Chains: Ethereum
Final Thoughts
The volatile nature of the crypto ecosystem is visible in the AEVO project. It is always important to check the potential of the project before engaging in any crypto-related activities. Practices like wash trading are against the rules and regulations of the crypto market. Any malpractices from the traders can have a significant impact on their crypto journey as well. Even promising crypto tokens can have an impact on such practices. Make sure that you invest in accordance with the risk tolerance level.
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