LAUNCHCOIN Surges 9,336% in 12 Days, Market Cap Hits $258 Million

LAUNCHCOIN has seen a remarkable surge in value, with its price increasing by 9,336% over the past 12 days. This dramatic rise has propelled its market capitalization to $258 million, surpassing other tokens such as Gigachad and Moo Deng. However, this meteoric ascent has also raised significant concerns about the token's legitimacy and long-term sustainability.

The number of LAUNCHCOIN holders increased from 7,738 to 31,683 within just 18 days. However, this growth has slowed considerably in the past week, with fewer than 600 new holders joining. This deceleration in holder growth, combined with the price rally, suggests that the token may be approaching a market peak. Investors are becoming wary of the overbought market conditions, which could lead to price corrections in the near future.

Beyond the erratic growth of holders, several red flags have emerged for LAUNCHCOIN. Earlier this month, the altcoin changed its name from Bob Pasternak (PASTERNAK) to LaunchcoinOnBelieve, likely in an attempt to enhance its legitimacy. However, data reveals that 83% of the total LAUNCHCOIN supply is concentrated in just 420 wallets. This high concentration of supply in the hands of a few holders increases the risk of price manipulation, which could destabilize the market.

Additionally, less than 25% of LAUNCHCOIN’s liquidity pool (LP) is locked. In the early stages of an asset’s lifecycle, larger LP locks are crucial for providing stability and building investor confidence. The current lack of LP locking raises concerns that the token may be vulnerable to sudden volatility, which could deter long-term investors.

LAUNCHCOIN is currently valued at $0.249, with a market cap of $258 million. The token's demand stems from the prospect of creating tokens by simply posting a tweet, a narrative that has gained traction in the crypto space. If this demand continues, LAUNCHCOIN could see further gains, potentially rising to $0.384 or even $0.600. However, if investors perceive that the token has reached its peak, as indicated by the week-long consolidation, they may move to sell, leading to a price drop below the support level of $0.149, potentially falling to $0.050.