IGNIS just pumped by over 70%. So what caused it? Is it the usual case of whales pumping a cypto then dumping it? Well, while that is always a possibility, Ignis could be pumping after Upbit paired it with KRW. This has possibly excited the market for two major reasons. First, it will be easier for South Koreans to buy this crypto directly. Given that South Korea is one of the largest cryptocurrency markets in the world, the volumes of Ignis traded is likely to go up. This increased liquidity is guaranteed to push up its price going into the long-run. This explains why the price has pumped hard as investors buy-in, in anticipation of increased demand in the future.
Second, Ignis is quite an interesting project, with some solid fundamentals to back up its value. Ignis is a child-chain of the Ardor blockchain. As such, it makes use of all the benefits of the Ardor blockchain. One of the benefits of this is security. Ignis intends to offer an asset exchange that is highly secure because it is designed to run on the Ardor security network.
On top of that, IGNIS has a unique aspect to it known as coin shuffling. Coin shuffling essentially allows users of the Ignis asset exchange to do so with some level of anonymity. This feature must be one of the factors driving massive numbers of Korean investors towards Ignis. That’s because a few months ago, South Korea declared an end anonymous cryptocurrency trading. As such, Ignis offers a massive opportunity for these investors to make the most of their crypto trading activities, without necessarily having to deal with regulations. That’s a strong fundamental value to Ignis when combined with the fact that it can now be traded directly for Korean currency (KRW).
So, can this pump sustain? Well, chances are that the price of Ignis will drop slightly. That’s because after such a massive price jump, investors are likely to start taking profits. It’s just natural that people will want to take some money off the market, after making a return of more than 50% on their investments.
However, going into the long-run, IGNIS will continue to rise now that it is paired with KRW. That’s because volumes from South Korean investors will continue to increase, both for short-term trading reasons, and for long-term fundamental investment reasons. Personally, I believe it is the Ignis monetary system that will drive volumes into this crypto. That’s because this system allows users to create their own tokens, which can be freely sold on the Ignis exchange.
As more people get to know about this feature, the number of user-generated cryptocurrencies running on Ignis will grow. It will mostly come from companies looking to tokenize their assets, hence giving Ignis and the entire Ardor ecosystem a major boost going into the long-run. That’s why IGNIS remains a great investment even after today’s pump. Chances of a major dump are minimal for such a strong coin.