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Paragon, an altcoin who aims to reform the cannabis industry, briefly broke into the top 20 cryptocurrencies by market capitalization. This is not good news, however: it seems that price manipulation was the cause of Paragon's short-term success, and the currency quickly slipped back down to number 131. In terms of price, Paragon recorded an exponential rise , bringing the value of the coin from $ 0.17 to $ 10.28 in a few hours – an extremely unlikely result, to say the least.
This is not the first time that the currency has seemed approximate: Paragon has lost most of its value after the conclusion of its ICO in 2017, presumably due to the proceeds of the currency that spend the proceeds on unrelated real estate investments. Later, the Paragon was targeted by the SEC as an unregistered security, but in November the Paragon team paid a fine and honored the SEC's demands, earning a place in the good books of regulatory authorities.
Despite Paragon's attempts to repair his image, the currency remains controversial, and this controversy has been exacerbated by the dubious surge in yesterday's prices. Reddit & # 39; s / r / criptovaluta subreddit has suspended the debate on money due to the "ridiculous amount of drama and fighting" between users and representatives of Paragon. However, some posts have passed the filter, indicating a widespread lack of confidence in Paragon's interior of the crypto community.
The exact factors that led to the rapid rise in prices of Paragon are still unclear, although it seems that a handful of smaller exchanges are responsible for increasing the price of Paragon and, by extension, its market capitalization. Even the major coins like Bitcoin are prone to price manipulation, although the results are usually less dramatic.
Suggested reading : Take a look at the best XRP wallets.
Exchange prices are without doubt the immediate cause of the rise in Paragon prices, but this does not explain why these exchanges have changed the price of the currency. It is not clear whether the exchanges have done so willingly, whether the Paragon team is involved or whether external actors or trading bots are responsible. In any case, the price gain is extremely unrealistic and unsustainable, and it is not a good thing for Paragon.
