Another food-related decentralized Finance (DeFi) project HotdogSwap, plummeted in five minutes. Following the current trend, we can predict that the market is increasingly turning into a pump.
The Hotdog token has burned down and its price is below $ 1
HotdogSwap is a new DeFi project that has existed for a very short period of time. As usual, in crop projects, the asset offered to provide an insane profit of up to one million percent annual return (APY). It is likely that this offer could attract a lot of traders, so the Hotdog token rose sharply in price within a short period after launch.
Data Uniswap.info according to the analytical panel of the leading DEX, it is indicated that the crypto asset has soared to more than $ 5,000. However, the situation with HotdogSwap worsened as crypto traders started to leave, taking advantage of the high price as first followers, which probably led to a drop in the price of the Hotdog token.
Currently, according to Uniswap, the token is valued at $ 0.0176.
The sudden rise and fall of DeFi tokens partly indicates that traders are approaching them in terms of pump and reset. By participating in new crypto projects, they dramatically increase the cost of tokens, but after a certain period of time, they switch off to earn themselves a lot of money, which leads to the collapse of the crypto project itself.