Cryptocurrency

2 reasons why Casper’s IOU token (CSPR) rose 2,300% in one week

2-reasons-why-caspers-iou-token-cspr-rose-2300-in-one-week

Bull market cycles in the cryptocurrency market can be exhilarating for day traders and long-term investors alike, but the speed at which prices are moving can make it a challenge for promising new projects that want to catch the momentum before the cycle plays out.

This reality has resulted in some projects being listed on exchanges in the form of token IOUs to allow interested parties to join the trading action before the token is officially released. Polkadot (DOT) is one of the most famous examples of a token that has gone through this process.

Casper (CSPR), a blockchain proof of stake platform, is a relatively new project that has benefited from this IOU process, and its token value has been around since its first coin offering ended on April 7th when early investors were there Having made significant profits, being able to purchase the altcoin for $ 0.03.

CSPR / USD 1 hour chart. Source: CoinMarketCap

Data from CoinMarketCap shows that the price of CSPR has risen 2,300% since May 6, rising from a low of $ 1.15 to a record high of $ 28 on May 10 as excitement and trading volume increased.

Important stock market entries trigger a frenzy

The CSPR IOU token was listed on some of the darker low volume exchanges like BitZ shortly after its ICO closed, where it was trading in the under $ 3 range through early May.

Price movements for the token spiked on May 7th as trading volume began to surge ahead of the May 9th announcement that CSPR would be listed on Huobi, the sixth largest cryptocurrency exchange. This development was registered by the Cointelegraph Markets Pro. ‘NewsQuakes’ system prior to price recovery.

NewsQuakes ™. Source: Cointelegraph Markets Pro

Trading volume on exchanges where CSPR is listed has increased sixfold after the announcement, and this resulted in the token price being 933 times its ICO price just over a month earlier.

Partnerships indicate significant use case potential

Scrolling through the project’s Twitter feed reveals that there is more than just speculative hype behind the rising value of the token, as multiple partnerships and protocol developments suggest that Casper has strong foundations and significant growth potential.

Following the launch of Caspers Mainnet on March 31, the protocol announced several collaborations, including partnerships with Terra Virtua, BIGtoken, WISeKey, and Lead Ventures. The team also initiated the launch of DEVvDAO, a platform that awards grants for open source development in the Casper network.

The protocol has also benefited from its focus on development and expansion into Africa and the Middle East, two regions of the world that are still relatively untapped in terms of the real growth potential they offer the blockchain sector.

Meet Saeed Hareb Al Darmaki, CEO of #CasperLabs in the Middle East and North Africa

– Casper (@Casper_Network) April 8, 2021

While Casper isn’t widely used on major exchanges, the hype surrounding the token and the performance of other IOU listings like DOT prove that investors are interested in the project.

Aside from speculation from traders, the project already has strong relationships with established crypto firms like BitGo, and the fact that there are a multitude of use cases suggests that there is more than the hype surrounding the recent price hike.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading step is associated with risks. You should do your own research when making a decision.

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Melinda Martin