Livepeer Token Surges After Grayscale Investment Announced Creation of Trust to Invest in LPT – Bitcoin News
Following Grayscale Investments’ announcement to offer a trust investing in Livepeer’s LPT, the token jumped just above $6 on the 17th. March 2021 at an all-time high (ATH) of $32.35 on the 21st. March.
Four-day survival LPT
During the four-day increase, the token’s market capitalization briefly rose from $120 million to more than $630 million. At the time of writing, however, LPT has lost $21, and the token’s market cap has also fallen to around $400 million.
In addition to PT trusts, Basic Attention Trusts (BAT), Decentraland (MANA), Chainlink and Philcoin have been established as part of grey market investments. However, only the LPT seems to have reacted more positively to the announcement than the others. For example: MANA, which was trading at $0.79 on the day of the announcement, briefly rose to just over $1. However, at the time of writing MANA is down $0.93.
So is BAT, which will be on 17. March started trading around $0.96, with a high of $1.36. Since then, however, the token’s value has fallen, and at the time of writing BAT was trading at $1.07. On the other hand, Filecoin and Chainlink posted small gains after the grayscale announcement. After about 24 hours, however, most of the conquests had been reversed.
Meanwhile, Bitcoin.com News asked Josh Frank, CEO of cryptocurrency company The Tie, what he thought about why LPT seemed to be doing better than the other four altcoins. According to Frank, the unexpected rush to LPTs could be due to the token’s low liquidity, Frank explains :
Livepeer moved the most because it is the smallest stock in terms of market capitalization and the least liquid. LPT has a very low trading volume and is not listed on any major cryptocurrency exchange. Investors who reacted gray to the news moved the price much more than other assets due to low liquidity.
Moreover, of the five algorithms selected by Grayscale Investment, only LPT has a market capitalization of less than $1 billion.
Do you agree that the low liquidity of cordless power tools is the reason for the rise in chips? Tell us what you think in the comments below.
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