What Is ROCKET Token?
Elon Musk has brought about the rapid rise of Dogecoin, which has led other projects to create imitators, including Shiba Inu (SHIB), Doge Killer (LEASH), and Weed Doge (WOGE). The latest Musk concept project Rocket(ROCKET) has just joined this list.
Rocket Token is based on the BSC Binance Smart Chain and has no connection to Dogecoin, but the project clearly is designed to capitalize on its relevance to Elon’s Musk’s Rocket to the Mars projects.
“Nicknamed the Moon Killer, this BSC token can remain well under a penny and still outpace Dogecoin in a small amount of time (relatively speaking),” the project’s website reads.
Rocket Token appears to have few technical goals. Rather, it aims to leverage market trends to climb through the ranks. It has seemingly succeeded in that goal: its price has risen quickly over the last day, gaining more than 500% over that period.
CZ’s Wallet Used as Burn Address
Despite the coin’s apparent takeoff, much of Rocket Token’s price gains appear to be artificial. The project sent 50% of its circulating market cap to the wallet of Binance creator CZ over the last year. His wallet now holds 50% of the coin.
The ROCKET Token project considers this action a “coin burn” — a commonplace strategy for driving up the value of new tokens.
CZ is not connected to the project. However, he has full access to the uninvited donation and could sell the tokens, which would the market and driving prices back down.
CZ has not commented on whether he is aware of the deposit and whether he intends to sell or hold the tokens, and after a year of holding, a sell off seems unlikely. Nevertheless, the unusual situation makes the coin’s price unpredictable.
Meanwhile, the aftermath of Elon Musk’s disappointing Dogecoin skit for Saturday Night Live has apparently caused the price of Dogecoin (DOGE) to drop by more than 23%. That may motivate investors to move to the competing tokens.
Still, the rapidly rising price of the Rocket(ROCKET) Token means the coin should be treated carefully, as large increases may not be sustainable.
Disclaimer: At the time of writing this author held less than $75 of Bitcoin, Ethereum, and altcoins, and did not hold Dogecoin or Rocket Token.
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