A new token grows by 600% within 48 hours of being launched – is Coinmarketcap still reliable?

Altcoins inspired by dogs or Elon Musk are popping up in the crypto room. While many of them had a red flag, researcher Max Maher examined how listings on CoinMarketCap and official social media posts can make upcoming projects look more serious.

Altcoin “DOE”

In addition to researching the coin meme Dogs of Elon (DOE), Maher has also studied how CoinMarketCap, other major exchanges, and KOL are promoting it. About CoinMarketCap, Mr. speak:

“The platform was one of the first to mention a 600% increase in the price of DOE tokens within 48 hours of going live.”

CoinMarketCap has tweets on 3/11:

“Congratulations to Dogs Of Elon (DOE) who achieved over 1 million watchlists in just a few days during the MINT period.”

Maher also criticized the fact that DOE is on 1.5 million watchlists, more than even large altcoins like XRP – even though DOE’s market cap is much smaller. At the time of writing, there are reportedly only 7,000 holders of this Elon-inspired token Etherscan.

While the Dogs of Elon explain CertiK has checked their NFT tokens and contracts, Maher claims not to have found any information on the project’s founders. In addition, he performed a reverse search of the founders’ profile pictures, which have now been deleted, and was redirected to a generic pictures website.

At the time of writing, DOE is trading at $ 0.133.

DOE 1 Hour Price Chart | Source: Tradingview

Is it believable or not?

CoinMarketCap listed the tokens even without being able to check their market capitalization or other self-reported metrics. In addition, the company was faced with allegations of allowing detergents to be traded. This is a process where traders sell and buy back the same asset to create a trade, increasing / decreasing the price of the asset.

“I went to CoinMarketCap Twitter and saw that they tweeted about dogs from Elon with more than 3 million followers 5 times in just 12 days – for a project that is currently in the top 700, and not the largest project by so far when she started tweeting about it, it was of very little value. If you look at CoinMarketCap’s Twitter, people don’t talk about such a project very often. “

Maher also noted how KOLs are helping to bolster the DOE and further build investor confidence in the relatively new project.

CoinMarketCap tweets:

“DOE is a community-focused DeFi token and a companion to NFT Dogs Of Elon. We are currently working on the airdrop. “

Another dog-inspired altcoin that has caught everyone’s attention is HUSKYX, thanks to a 67,000% gain in a single day. Although CoinMarketCap listed the project it is with annoying characters like spelling / grammar errors on the official website and even Suggestion give away Apple’s iPhone 12 Pro Max to increase its market capitalization.

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