Over the past week or so, it’s been difficult to ignore the trading antics of CYBER ($CYBER)- the native crypto of Web3 social media platform CyberConnect.
What is CyberConnect
CyberConnect is a Web3 social media project that allows developers to create apps which revolve around digital identity, content, and user interactivity- i.e. social media platforms.
Given its Web3 and decentralised premise, the core and unanimous feature across such platforms is that users can own their digital identities and data.
In addition to its governance CYBER token, the platform’s Web3 integrations include a smart contract to record users’ content and social connections called ‘CyberGraph,’ as well as ‘CyberID’ ERC-721 tokens which represent unique handles for user accounts across the CyberConnect ecosystem.
The CYBER Pump
Given the rather flat and uneventful altcoin market of today, CYBER’s unparalleled pump has been a major talking point over the weekend.
Per the final days of August, the coin’s market cap stood at a humble $40 million, however come Friday (September 1st), this had risen to an all-time-high (ATH) of $175 million (per CoinMarketCap)
In addition, and per the last 24-hours, over $477 million worth of CYBER has traded hands, which is over ten-times the volumes observed at the beginning of the week.
With bullishness for this stand-out token reaching heights unknown to bear market conditions, traders were seen paying over 2000% to buy the tokens on margin, with funding rates reaching 2,190% on ByBit and Bitget, as well as 1,500% on Binance.
Despite returning to more ’normal’ figures, these dynamics demonstrate the bullishness in which long traders have for the token, as they’ve evidently been more than happy to pay the fees that are required when future contracts are pricier than spot contracts.
What Caused the CYBER Pump
No one is certain as to what caused the pump, however it’s thought that Binance- the exchange that’s facilitated the majority of coin’s trades - rolling-out CYBER trading services earlier this month had something to do with it.
The CEX also hosted a “Simple Earn CYBER Quiz Promotion” earlier this week, which saw the first 45,000 customers to read a CYBER-focused article and complete a quiz with 100% marks receive 0.25 CYBER in a 150-day locked products position.
Moving Forwards- Is CYBER Another Foobar?
In wake of achieving ATHs in market cap ($175 million) and price ($15.93), CYBER’s current market cap has slumped to $77.7 million, whilst its price has over-halved to $7.04. In turn, this has seen the token vanish from CoinMarketCap’s top 200 cryptocurrencies (in terms of market cap).
Given CyberConnect’s similarities with other Web3 social media outlets, many are concerned that it may follow the same path as Friend.tech- an X-backed platform that allows X users to invest in their favourite users’ social network channels, create token-gated chat rooms with fellow investors, and trade their token shares as if they were any other trading asset.
Here, facilitating such trades is the platform’s native Foobar ($FOO) token.
After launching on August 10th- and after attracting a number of notorious names from the ‘Crypto Twitter’ space- the platform amassed a whopping 4,400 ETH (around $8.1 million) in its first 24 hours of trading.
However since then- and after reaching a peak 24-hour trade volume of $16 million on August 21st- activity on Friends.tech slumped to a staggering zero come the start of September.
In conclusion, it’s logical to fear that CYBER may be following a similar path (especially given the similarities and bearish conditions involved), however given the relatively nascent stature of both CyberConnect and Friends.tech, only time will tell whether these crypto-backed Web3 social media platforms will take-off or not.
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This article is intended for educational purposes and is not financial advice.
