This crypto token zoomed over 8,50,00,000% within a week! Here's why

New Delhi: Penny token Bitecoin has zoomed 8,57,63,221 per cent over the past one week, implying that the currency has turned an investment of Rs 1,000 into a mind boggling Rs 85.76 crore in just a week, suggests the data from Coinmarketcap.

The penny token has witnessed a surprising rally of 19,650 per cent in the last one day as it zoomed to $0.0006462 from $0.000003271 in the last 24 hours time range.

This token commands a market capitalisation of more than $3 billion. However, the volumes of token have dropped about 21 per cent. However, the volumes have remained a little more than $125,000.

There are a total of 6,10,000 Bitecoin tokens in the supply, with its maximum supply capped at 1,000,000,000,000,000. Also, Bitecoins will be released on the basis of Binance Smart Chain platform and fully comply with ERC20 standard.

However, crypto market experts hint towards phishing activities in the token, which has led to the sudden gigantic spurt, surprising many. They suggest keeping away from such lucrative traps.

"More than 90 per cent of Bitecoin is held by top five wallets and these whales can manipulate prices at their will,” said Sharat Chandra, VP- Research and Strategy , EarthID, a self-sovereign Identity Management Platform

"It's a pretty risky proposition. Risks far outweigh the rewards promised by the BTC rebase token,” he added with an advice to Investors should stay away.

Speculative interests may indulge in price manipulations as the token eyes a listing soon. Pretty much expected in this volatile market scenario.

They claim to be a game changing technology but it has a fuzzy logic, said Raj A Kapoor, Founder, India Blockchain Alliance. "Partaking in token sales and supporting compliance is a good concept but their white papers does not clearly articulates this."

It looks good on paper, but seems unsubstantiated, said Kapoor, who advises investors to stick to fundamentals and not fall for speculative hallucinations.

Rebase tokens have a unique expansion and contraction mechanism where fluctuations in token price forces adjustments in the circulating supply of tokens, Chandra said.