2 reasons why Casper (CSPR) IOU token rallied 2,300% in one week
CSPR appears to be following DOT’s route to success as its IOU token latched on to the bull market’s momentum and rallied 2,300% before it’s even listed on major exchanges.
Bull market cycles in the cryptocurrency market can be exhilarating for day traders and long-term investors alike, but the speed at which the prices move can make it a challenge for promising new projects that are looking to catch the momentum before the cycle plays itself out.
This reality has led to some projects listed on exchanges in the form of token IOUs so that interested parties can get in on the trading action before the token is officially released. Polkadot (DOT) is one of the most well-known examples of a token that went through this process.
Casper (CSPR), a proof-of-stake blockchain platform, is a relatively new project that has benefited from this IOU process, and its token value has made significant gains since the end of its initial coin offering on April 7 when early investors were able to acquire the altcoin for $0.03.
Data from CoinMarketCap shows that the price of CSPR has vaulted 2,300% higher since May 6, jumping from a low of $1.15 to a record high at $28 on May 10 as excitement and trading volume surged.
Major exchange listings spark a frenzy
The CSPR IOU token was listed shortly after the completion of its ICO on some of the more obscure, low-volume exchanges like BitZ where it traded in the sub $3 range until early May.
Price action for the token started to pick up on May 7 as trading volumes began to increase ahead of the May 9 announcement that CSPR would be listed on Huobi, the sixth-largest cryptocurrency exchange, a development that was registered by the Cointelegraph Markets Pro ‘NewsQuakes’ system ahead of the price rally.
Trading volume on exchanges that list CSPR increased six-fold following the announcement and this propelled the token price 933 times higher than its ICO price just a little over a month before.
Partnerships point to significant use-case potential
A scroll through the project’s Twitter feed shows that there is more than just speculative hype behind the token’s rising value as multiple partnerships and protocol developments indicate Casper has a strong foundation and significant growth potential.
Following Casper’s mainnet launch on March 31, the protocol announced multiple collaborations including partnerships with Terra Virtua, BIGtoken, WISeKey and Lead Ventures. The team also initiated the launch of the DEVvDAO, a platform that issues grants for open source development on the Casper network.
The protocol has also benefited from its focus on development and expansion into Africa and the Middle East, two areas of the world that remain relatively untapped as far as the true potential for growth that they offer the blockchain sector.
— Casper (@Casper_Network) April 8, 2021
Even though Casper is not widely listed at major exchanges, the hype surrounding the token, and the performance of other IOU listings like DOT prove that investors are interested in the project.
Aside from speculation from traders, the project already has strong relationships with established crypto-firms like BitGo and the fact that there are a variety of use cases suggest that there’s more than the hype surrounding the recent price surge.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
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Author: Jordan Finneseth