As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of pump-and-dump schemes, and the recent Turbo situation has raised some red flags that warrant closer scrutiny. The team’s consistent liquidation of tokens to centralized exchanges is concerning, especially when considering the sharp price drops that followed previous such events.
Currently, Turbo is reaching new peak values, with the upward trend starting in mid-September and causing it to break through previous local resistance points. This movement has been sustained and is currently driving the coin’s valuation to unprecedented heights. At the moment of writing, one Turbo is being traded for $0.010, although its value has dropped approximately 20% from this week’s highest point.
Turbo Team Selling: Time To Exit?
Based on Lookonchain’s analysis, the recent drop in price from record highs at $0.013 this week might largely be attributed to the team selling off their tokens. This is because there have been repeated transfers of these tokens to Binance and OKX, raising questions about whether they are leaving the project and unloading their holdings onto investors.
Transferring tokens to centralized exchanges is usually interpreted as a bearish move, indicating that the owner may want to sell. Yet, it’s important to note that this doesn’t necessarily mean they have sold. Following such a signal on October 16, the token’s price started to decrease, hinting at a potential increase in supply.
As an analyst, I’d like to provide some context: Over the past few months, our team has been gradually liquidating approximately 1.5 billion TURBO tokens. Recently, we transferred 810 million TURBO each to Binance and OKX. This move follows our ongoing liquidation strategy. Since June 5, Lookonchain analysts have noted these deposits to various exchanges.
According to the Turbo’s daily chart, there was a price surge to $0.009 towards the end of May. This increase occurred around the same time as the team’s liquidation process.
In June, the prices plummeted significantly following the transfer of tokens to centralized exchanges, falling more than 65% in total. However, TURBO found a stable point at $0.0029 and went on to set new peak values above its May 2024 highs by early October.
Is This A Pump-And-Dump Scheme?
Based on historical patterns and if the team continues their selling efforts, there’s an increased likelihood that the TURBO token could experience further drops from its current peak levels. Such a dip might initiate a significant market decline, potentially driving the price down to $0.007 or even lower.
As a researcher, I must admit that the notion of our team participating in a “pump-and-dump” scheme remains speculative at this point. However, should we choose to address these concerns publicly, it could help alleviate doubts and potentially stabilize prices within the market. For now, there is no concrete evidence to substantiate any claims suggesting such activity on our part.
This past week, the U.S. Department of Justice (DOJ) brought allegations against the meme coin market maker, GotBit. The accusations include practices such as wash trading and participation in manipulative pump-and-dump strategies.
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2024-10-17 20:10