Sudden price changes with low volume suggest a handful of traders may be steering the market.
With zero trading activity in 24 hours, Bit Hotel raises major concerns over liquidity and project viability.
The publicly transparent supply is many times higher than the circulating supply, which indicates a centralization threat and its potential price fluctuations.
As decentralization is one of the main principles of blockchain technology, some digital assets appear with low-level decentralization in terms of a narrow liquidity range, an over-concentrated supply, or rapid price changes due to the low number of participants. A sample of BitStable (BSSB), Bit Hotel (BTH), XT Smart Chain (X), and Toko Token (TKO) also has patterns of centralized aspects that may have a deterring effect on the risk profiles of investors.
BitStable (BSSB): Low Volumes and Trading Volatility
BitStable BSSB is changing hands at 0.02350 experiencing an upsurge in the last 24 hours of 0.84 percent. The token experienced extreme volatility in terms of price during the day with a rather narrow trading range. It started at around a price of $0.02331 and took a slight dip at the initial hours but later bounced back with more strength at about 4.00 AM to take over the mark of the $0.0234.
Source: CoinMarketcap
The asset’s market capitalization held steady at $292.66K, with a 24-hour trading volume of $ 150.98 K. With a total and circulating supply both reported at 12.39 million BSSB, the token appears to be fully.
Bit Hotel (BTH): Trading Halt and Liquidity Concerns
During the course of the 24-hours that was observed, there was virtually no trading activity of Bit Hotel (BTH). It showed an appreciation with a flat price of $0.0001775 throughout the day, and settled at the pace of 0.0001768 with a loss of 0.38 percent. Coming to such a publicly traded coin, no trading volume could be observed over the period, which is untypical of any trading activity such that it is being traded on an exchange.
Source: CoinMarketcap
Although it claims to have 10,430 holders with a market capitalization of 156.88K, the BTH trading data raises suspicions about the activity of the market, as well as participants. The total supply of the token is indicated as 1 billion BTH, although its actual circulation is nearly 887 million. Instead, the lack of volume and a flat chart implies that the information on prices could have recently failed to show the market trends well which is a typical example of centralized or stagnant token marketplaces.
XT Smart Chain (XT): FDV High and Concentrated Supply
XT Smart Chain (XT) ended the day on a price of 4.84 and decreased by 4.18 percent in the last 24 hours. The token started the day off at a price that was higher than $5.05 before entering a downward trend and losing value despite an increase in the trading volume by 25.35 percent to a value of $14.35 million.
Source: CoinMarketcap
Its market capitalization is at 29.33 million, and the fully diluted figure is at 4.84 billion. Such a large disparity can be attributed to a self-reported circulating supply of only 6.04 million XT of anonymously reported total supply of 1 billion. This large gap in supply shows that it has a centralized structure with little part of the supply available to the people.
Toko Token (TKO): Bad Signal Equilibrium Value and Lacking Price support
The Toko Token (TKO) dropped by 6.13 percent at the end of the day to close at US$0.1304. The token opened at around US$ 0.1395 but was under selling pressure all through the day. The token did not show signs of rebounding in price momentum despite a slow 5.09 percent jump in 24-hour volume to 1.81 million.
Source: CoinMarketcap
Having a circulating supply of 168.66 million TKO and a total of 500 million TKO, a good percentage of tokens is currently undistributed. Its market cap is at 22 million dollars, and the fully diluted valuation rises to 65.24 million dollars. That is why this disproportion between present and prospective market capitalization represents this risk of supply concentration.
