Phoenix Global Token is up 5,600% in just four minutes – But there’s a catch

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According to data from CoinMarketCap, it took just four minutes for a relatively unknown cryptocurrency to soar over 5,600% on November 5th.

Named Phoenix Global (PHB), the token rose from $ 0.02057 to as high as $ 1.1413 on November 5, with its volume surprisingly dropping – from $ 3.79 million to around $ 777,680 over the same period.

Phoenix Global (PHB) Price movement over the last 24 hours. Source: CoinMarketCap

At the heart of the massive PHB pump, however, was a token migration and technical bug that CoinMarketCap has now fixed with a PHB price of now a relatively modest 59%.

Fake PHB Pump?

In September, Phoenix Global announced in detail that it would switch its decentralized application solutions for companies from the Neo-Blockchain to the Binance Smart Chain (BSC). The team also suggested migrating its NEO-based native asset PHX to PHB, a BEP-20 standard token, with a “redenomination” of 100: 1 (100 PHX = 1 PHB).

Said migration began on November 2nd and effectively reduced Phoenix Global’s official token offering from around 3.5 billion to 35 million. Meanwhile, the resolution resulted in the new PHB tokens trading 100 times higher than the pre-swap dollar price.

This sparked chaotic calculations at CoinMarketCap as it began to compare the value of old coins with that of the new, while equating their supply cap to 3.5 billion. As a result, traders believed that PHB’s market valuation had increased 56 times in less than five minutes, reaching $ 4.24 billion to hit the 52nd largest.

“The project had been renamed, and this affected the market pair with the largest volume on an exchange,” explained CoinMarketCap in private comments.

Phoenix Global (PHB) market capitalization in the last 24 hours. Source: CoinMarketCap

After all, just a glitch

The cost of buying a PHB token did not go up as advertised. On the contrary, the token fell more than 32% to USD 0.947 after debuting on Binance on November 5th, as shown in the chart below.

PHIB / USDT daily price chart. Source: TradingView

Earlier this year, a technical glitch at CoinMarketCap had also put Wrapped Bitcoin, a cryptocurrency that acts as a mirror of Bitcoin within the Ethereum ecosystem, to the top of cryptocurrency.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every step of investing and trading involves risk, so you should do your own research when making a decision.