Cryptocurrency News

This Unknown Cryptocurrency Grown 164,842% in Hours, Only to Crash 99%


Around $7.65 billion entered the cryptocurrency market in just three hours via a widely unknown altcoin on June 14.

Dubbed as WebDollar (WEBD), the token’s per unit price rose from $0.0003711 to $0.6121 between 0900 GMT and 1200 GMT. Its market valuation gained a little over 164,842%. Nevertheless, the quantity declined with the rise in prices; They fell from around $345.2K to $318.94K during the rally.

Breaking out those three hours of wild price action featured a sequence of incredible pumps and dumps.

According to data obtained by CoinMarketCap.com, the first WEBD jump took its market capitalization from $1.84M at 0954 GMT to $1.5B at 0959 GMT – that’s just three minutes.

Later, by 1039 GMT, the market capitalization fell back to $5.12M, followed by another spike to $9.5B at 1129 GMT.

At one point, Webdollar became the 18th largest cryptocurrency project by market cap, beating more established blockchain protocols such as Stellar, VeChain and Tron.

WebDollar’s market cap exceeded $7.65B in a matter of hours, only to crash 99% later. Source: CoinMarketCap.com

But then, the volatile madness came to an end as the coin’s market valuation fell by more than 99% in less than two hours after topping $9.5B. As of 0700 GMT on Tuesday, it was $10.38M. Meanwhile, WebDollar’s crypto ranking fell from 18 to 873.

index factor

Features of a pump-and-dump token appeared in the price action of WebDollar on Monday. Arguably, the project’s market capitalization jumped above and below the multi-billion dollar, even though its trading volume remained confined within the $400K range. And taking a closer look, 99.23% of its trading activity originated from a single exchange called Indox.

Most of the WEBD volume was recorded on the IndoX cryptocurrency exchange during the coin’s pump-and-dump. Source: CoinMarketCap.com

Indox Limited is registered in the United Kingdom under company number 12029621. The exchange is said to be headed by a man named Collins Spencer, who serves as its chief executive and financial officer. Another organization, Grace North, currently serves as IndoX’s Chief Technology Officer.

Cointelegraph’s effort to locate the two executives on LinkedIn and Twitter yielded no results. Meanwhile, a run through reviews of Indox by its previous customers led them to accuse both Spencer and North of possessing fake identities.

“Spencer Collins (CEO/CFO), Grace North (CTO) is the fake person, working as support in Telegram Chat,” wrote Leo99 filed his complaint on the bitcoin forum BitcoinTalk.org. “Constantly postpone or ignore messages to solve all problems for the future.”

An in-depth look at IndoX Ltd’s official filing with the UK Registrar’s Office revealed that it had received first gazette notice for not sharing details about its shareholders in November 2020. The company replied to the authority with only one name, collins spencer, which holds 1200 shares, indicating that IndoEx is an individually owned company.

UK registrar later struck off notice against indox ltd. Nevertheless, the exchange continues to operate without approval from the UK Financial Conduct Authority (FCA).

The FCA directory did not return any results matching IndoEx LTD

The research led to three major conclusions:

  • The WEBD price pump-and-dump originated from an exchange called Indox, which operated under the UK-registered entity Indox Ltd.
  • Colin Spencer, the sole stakeholder in the company, is nowhere to be found on social media.
  • Indox’s LinkedIn Profile Claims to have 10-50 employees, but only three of them are using a business-oriented social media service. All of them have hidden LinkedIn profiles and are from Indonesia, not the UK.

Evidence so far suggests that IndoEx was instrumental in the single-handed pumping and dumping of WEBD tokens on Monday. The token was trading flat during the Tuesday session of June 15.