Traders were on the hunt during a bearish day for blue-chip crypto markets, with Bitcoin (BTC) down 3% to $64,000 and Ether (ETH) down 2% to the mid-$3,100s. They are flocking to the on-chain market. For today's top crypto gainers, it can quickly pay off.
On-chain markets refer to crypto assets that are issued and traded directly on the blockchain. Ethereum, Solana, and BNB are the chains most commonly used by those issuing or trading on-chain tokens.
On-chain cryptocurrencies are highly illiquid compared to cryptocurrencies traded on centralized spot cryptocurrency exchanges.
This means that volatility is very high, and relatively small amounts of buying and selling pressure can cause large price changes.
Newly launched coins can easily earn 100x returns in a matter of days as the market capitalization skyrockets from tens of thousands to millions.
Similarly, a coin can quickly lose 90% of its value. That's not the only risk.
On-chain traders, beware of scams
There are almost no barriers to entry for someone to create their own token. As a result, scammers flock to on-chain cryptocurrency markets in an attempt to siphon funds from unsuspecting investors.
They can do this in different ways. One method is to inject malicious code into the token's smart contract to create unfair trading conditions.
Alternatively, the token could be pump-and-dump. This is where the team behind the token builds artificial hype, generates demand, cashes in, and abandons ship.
One common technique is for a token issuer to watch the ETH in the token's liquidity pool rise as the token's price increases, and then suddenly withdraw and use up this ETH.
As such, many on-chain investors seek “locked liquidity” that prevents so-called “lag pull” attempts.
With that said, let's take a look at today's top crypto gainers that traders are monitoring on DEXTools.
Today’s top crypto earners
ELON
A newly launched meme coin named after Tesla CEO and X owner Elon Musk has generated a lot of excitement.
https://twitter.com/Elon0x69420/status/1783029246795129130
According to DEXTools, Elon (ELON) is up 381,000% with a market cap of $16.4 million and over 3,250 holders.
According to DEXTools' security audit, there are only two aspects of meme coins that are concerning regarding smart contracts.
However, given that $574,000 of liquidity is not locked in, it could still be a pump-and-dump or lag pull.
BOYS CLUB
Another recently launched coin called BOYSCLUB is up 13,600% according to DEXTools.
The previous market cap was $650,000 and unlocked liquidity was just over $80,000.
The token has nearly 500 holders and trading volume to date has reached nearly $3 million.
Not bad for a first day of trading. However, traders should always do their due diligence before trying a new coin. Remember that most are scams.
VITALIK
Vitalik (VITALIK), the meme coin named after the founder of Ethereum, just launched and soared over 6,000% on Wednesday.
https://twitter.com/vitalik0x69409/status/1783112718687613096
This gives the company a market cap of $300,000 and liquidity of $60,000, according to DEXTools.
The token has over 450 holders and a 24-hour trading volume of approximately $2.5 million.
Cryptocurrency Alternatives to Consider
Investing in low cap shitcoins is a very risky strategy.
A seemingly innocent project can easily turn out to be a scam, and a few large sell orders can easily cause the price to drop by 80%.
A still risky, but perhaps better risk-reward strategy is to participate in crypto presales.
The idea is that investors secure tokens of promising crypto projects/protocols at a discounted early price.
These projects leverage those funds and pay for the development and marketing of their protocols.
Although many failures can occur when investing in cryptocurrency presales, and unforeseen circumstances can prevent the realization of a project's vision, smart presale investors routinely make 10x more mistakes. We have secured more profits.
CryptoNews analysts are combing the market as hundreds of pre-sale projects compete for investors' money.
Here are the 21 presale projects with the most potential.
See 21 cryptocurrencies
Disclaimer: Cryptocurrency is a high-risk asset class. This article is for informational purposes only and does not constitute investment advice. You could lose all your capital.
