Pump and Dump: Biden and Trump Election Tokens Insanely Volatile
The 2020 US Elections are on, and there’s no shortage of excitement around them. At the time of this writing, it’s anyone’s guess who the winner will be as ballots are still being counted in certain states.
Bookmakers and cryptocurrency exchanges where users can bet on the outcome, however, are strongly favoring Joe Biden currently. This comes after massive volatility in the tokens in the past few hours.
Massive Pumps and Massive Dumps
One of the more popular cryptocurrency exchanges, FTX, has launched tokens through which users can speculate on the outcome of the ongoing 2020 US Presidential Elections.
The structure of these tokens is simple – they expire to $1 or $0, depending on whether the candidate wins or loses. For example, if Joe Biden wins the elections, the Biden 2020 token will expire to $1. On the opposite, if Donald Trump wins, the Trump 2020 token will expire to $1.
In other words, the more expensive the token is, the more users believe that the underlying candidate will win the race.
In the past few hours, these tokens have been massively volatile as the electoral landscape in the US continues to shift.
As CryptoPotato reported earlier today, Trump’s token skyrocketed, signaling that betters are favoring him. However, over the past few hours, things have changed dramatically, and now Biden appears to be the strong favorite.
As seen on the chart, Tump’s 2020 token skyrocketed by almost 180% to reach a high of $0.84 earlier today. A few hours later, it plummeted to $0.152 for an 81% decrease before settling down to where it currently trades at around $0.27.
By design, Biden’s 2020 token performed in the exact opposite. At the time of this writing, betters are strongly favoring him to win the race.
Tension Goes on as Markets Jitter
While waiting for the ballot counting to continue, legacy futures markets are also riddled with uncertainty.
S&P 500 futures are on the move and are currently charting an increase of about 2%, despite being particularly volatile for the past few hours.
Bitcoin’s price is also rather indecisive. It spiked to a high of above $14,000 earlier today only to drop down to about $13,550 and start surging again to where it currently trades at just shy of $13,900.
