Some tokens with the same Uniswap UNI ticker had an increase in value. One, however, fired.
There is never a boring day in the cryptocurrency market. From coins with strange food-inspired names that attract billions in the DeFi world, to a likely mistake that caused the price of a token to rise by half a million percent in a few hours.
Buying the wrong UNI
UNI (the most recent) is the governance symbol of the largest decentralized exchange protocol and automated market maker, Uniswap.
Yesterday, the token generated a huge buzz in the industry, especially since everyone who used Uniswap before September 1st received 400 UNI tokens that are currently sold at a price of $ 5 each.
This had a serious effect on Ethereum’s network, as fees charged the sky and miners generated up to a million dollars in transaction fees in an hour.
But this is not the most bizarre thing that has happened. A token, carrying the same ticker as the Uniswap token, but called the Unicorn Token, increased an astonishing 500,000% before falling back into the abyss from which it emerged.
The price of the Unicorn token skyrocketed from approximately $ 0.001 to $ 5 in a matter of minutes and, in fact, traded at this surprising rate for a while before falling back.
A human error?
A human error seems to be the most obvious and likely explanation of what happened. Confused investors may have rushed to the market in hopes of buying Uniswap’s new UNI token, without paying much attention to detail.
It is also important to note that the token was mainly traded on a relatively lesser-known cryptocurrency exchange and generated a 24-hour turnover of over $ 46 million. For comparison, the only other exchange that supports the token accounts for less than $ 5,000 of the 24-hour volume.
In any case, other tokens with the same ticker, such as the Universe Token, also saw a slight increase in their value, probably for the same reason.