The recent surge of 21.92% followed by a sharp drop of the Kaia token is the result of a complex interplay of multiple "explosive factors":
🔥Reasons for the surge:
New explosive benefits from South Korea's crypto policy: President Lee Jae-myung approved on June 3 that the National Pension (worth $884 billion) can allocate crypto assets, leading to an influx of funds and directly igniting the market. Kaia, as a merger project of major players in South Korea and Japan, is seen as the biggest beneficiary of this policy dividend.
Institutional buying in the dark market:
On-chain data shows that 500 new addresses with holdings of over $100,000 were created within 30 days, and there was a significant transfer of $15 million into Binance's cold wallet, suspected to be institutional accumulation.
AI + blockchain explosive combination:
The Kaia Agent Kit launched on June 10 allows AI agents to autonomously execute on-chain transactions, directly stimulating the market's fervent imagination for "AI-driven DeFi".
💥Triggers for the drop:
Mainnet upgrade disaster: The v2.0.1 version released on June 10 urgently patched a real-time pruning vulnerability, exposing coordination issues within the technical team, raising investor concerns about the risk of collaboration between the South Korean and Japanese development teams.
Policy implementation delays:
Opponents have targeted the South Korean won stablecoin plan citing the collapse of Terra, hindering Lee Jae-myung's policy advancement, and some short-term capital took profits.
Precision harvesting by big players: Technical indicators showed that during the surge, the RSI reached 85.11 (extremely overbought), and the shortening of the MACD histogram indicated a depletion of momentum, suggesting that major players were offloading based on favorable news.
Explosive insider news:
Insiders revealed that a certain South Korean consortium originally planned to announce a $1 billion Kaia ecosystem fund on June 11, but it was temporarily halted due to the technical vulnerability incident, triggering panic selling. The current price fluctuations are truly a life-and-death speed of policy dividends versus technical risks, institutional games versus retail following!
For solid insights in the crypto world, click my profile to follow me for more. Enjoy deployment of potential hundred-fold coins in a bull market and daily spot strategies.