Why Phoenix Global Token Appeared To Surge 3,700% In 1 Hour

The price of Phoenix Global PHB/USD surged 3,700% in under one hour Thursday, according to data from CoinMarketCap.

What Happened: Data from the cryptocurrency price aggregator showed that PHB saw a 6,400% rise in market cap, which was reported to be $3.4 billion at the time of writing.

Trading volume for the Neo NEO/USD-powered crypto token was a mere $3.8 million, leaving some market participants perplexed as to why the token experienced such a large price surge.

Anyone know whats with $PHB on CoinMarketCap?

+6,484% in 1 hour

Did I miss anything? pic.twitter.com/yxPArlcGKu

— drathez .sol (noot, noot) (@drathezsol) November 5, 2021

However, the reality appears to be less appealing for those looking to get in on the rally.

Phoenix Global is undergoing a token redenomination of 100-to-1 which CoinMarketCap has not accounted for as yet.

After factoring in the coin redenomination, the results revealed that investors faced a 30% loss on the value of their PHB/BTC holdings.

Trading of PHB/BTC and PHB/USDT spot pairs went live on Binance as of 12 a.m. Eastern Nov. 5. 

At the time of writing, withdrawals and deposits remained closed. Binance said it would make a separate announcement to notify users when PHB withdrawals resume.

Photo by M. B. M. on Unsplash.