This Cryptocurrency Just Surged Nearly 2,600% Overnight

What happened

Well, the days of massive speculative increases in digital assets clearly aren’t over. Today, the biggest mover in the cryptocurrency world, by a wide margin, is Gifto (GFT). This little-known token has surged a whopping 2,593% over the past 24 hours, as of noon ET. That’s right, overnight, this little-known crypto has rocketed into a top 50 position in the crypto rankings by market capitalization.

Yesterday, this token traded at below $0.04 apiece at its low. Thus, at its current price of $1.60 per token (and with 1 billion tokens in circulation), this project went from a market capitalization of around $30 million to $1.6 billion in a few hours. 

Gifto is purportedly a web3 gifting platform, aimed at becoming a hub for blockchain-based giving. This project has since been adding on new features, pushing what it calls its “megaexpansion plan” involving various staking and charitable initiatives, as well as offering a web3 wallet and a marketplace for content creators to turn their non-fungible tokens (NFTs) and other forms of digital art into GFT tokens.

Notably, this project recently saw a token swap, from a previous GTO token to its new GFT token, in mid-january. This swap has brought GFT to the Binance Smart Chain, streamlining its two-token structure, and making this a project that more investors (clearly) want a piece of.

So what

Gifto’s token swap is old news, having taken place more than three weeks ago. And while this project’s altruistic aims are certainly noteworthy, it’s unclear exactly why this token is pumping so hard today.

Its megaexpansion plan certainly sounds great, but it’s not really all that different from many of the other project road maps I’ve looked at in this sector. Thus, I’m at a loss for what’s really driving the boat with this token right now.

Now what

What’s particularly confounding about this move is the relatively flat nature of the crypto market today. Accordingly, the outsize moves seen by various small-cap tokens (which Gifto can no longer be categorized as) are more than making up for megacap token declines. In a way, it appears much of the speculative fervor being seen in the stock market is bleeding over into alternative asset classes such as crypto. For these more speculative tokens, that’s a great thing.

I have no idea how far this token can run from here. Thus far, GFT has hit a high of $2 per token today, meaning that it could have been as much as a 50-bagger for investors who bought at $0.04 and sold at $2. 

Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.