Aurumcoin (AU) pulled a surprise today, gaining by over 6000%. That a crazy move that has seen one Aurumcoin now trade at over $1000. So what is it about? According to their website, they are a cryptocurrency that is fully backed by gold. They intend to bring back the gold standard, by replacing fiat money with gold-backed money. What’s most interesting is that this coin only has a supply of 300,000 coins, which gives it the potential to rise to millions of dollars a coin if it were to gain acceptance.
So is it really worth it as an investment? Well, looking at its trading volumes in the last 24 hours, there is no doubt that this was definitely a pump. The massive move in price was driven by volumes of less than 1 BTC, a clear signal that it was probably done by a single entity.
This means that even if you caught that move, you would most likely not be able to liquidate it, which makes the price gains pretty much worthless. Fundamentals wise, Aurumcoin doesn’t offer much that has not been proposed before. Besides, there is no way for an investor to prove that it is actually backed by solid gold.
Crypto space right now is full of projects promising to change the world, but many of them will find it hard achieve their objectives. As such, the fact that Aurum has pumped and now ranks higher than projects like Digibyte (DGB), Nano (Nano) among others may not necessary mean that it is better than them. It is yet to gain any kind of adoption or market presence in spite of the fact that it has been around for years.
The good thing is that investors are slowly beginning to learn how to differentiate between solid projects and vaporware. Over time, the strong projects will rise to the top, while the weak ones disappear from the market. The recent ICO shakeup is just the beginning.
In a few years, only projects that have real uses, and are fundamentally strong will be in the top 100. For investors, getting into solid cryptos that have strong fundamentals before they explode, could create huge amounts of wealth in the future.