Aura (Aura), a culture token built on the Solana (Sol) blockchain, has surged over 3,500% over the last 24 hours, showing an extraordinary price surge.
This dramatic spike has allowed many investors to secure significant profits. However, market analysts warn that the rally could be part of a larger lag pull scheme.
Why are the prices of Aura Tokens soaring?
According to the latest data, it was pumped to a low of $0.001 to $0.037 at press time. This has shown appreciation of 3,538% over the past day. Furthermore, the market capitalization rose from around $1.1 million to $34.4 million.
Trading volume also increased by 106,684.40% to $308 million, indicating the importance of investors’ interest and activity. Aura claims to be the best everyday winner at Coingecko and is currently the most popular cryptocurrency on the platform.
Lookonchain data highlighted that the Aura rally allowed whales to reserve a $104,000 profit.
“Five months ago, Trader FVABFC spent $24,000 to buy a 287 million aura, but crashed over 90%. Today, the aura suddenly surged 35 times. He sold all 287 million auras for $128,000.
Another trader also shared an unrealized profit of $698,154 on Aura Holdings in an X (formerly Twitter) post. However, the rally raised a red flag among the market watchers.
“Aura was pumped out of nowhere. Don’t fall into it. They develop the crypto sector. They buy high beliefs on organic charts. This doesn’t work,” the user said.
Meanwhile, David, a user who specializes in monitoring and reporting cryptocurrency fraud, has flagged Aura as “Level 3 – Expert Scam.” According to David’s post, Aura doesn’t have a clear utility.
He noted that the token was created on May 30, 2024. Its market capitalization reached over $70 million as the Aura reached its all-time high (ATH). Despite this, it quickly fell to about $600,000.
“It’s designed for rug pulls! They’re lucky because they didn’t start this work at that point,” the post read.
Additionally, David has raised concerns about the recent price pump. He emphasized that there was no clear explanation, such as the partnerships and utilities behind the token. He said there was a sudden surge in purchasing activity on the chain around 6pm on June 10th.
However, it is unclear whether this increase in activity is organic or artificially driven. Furthermore, the thread noted that the power supply of the token is well controlled.
David emphasized that many top aura holders have a large “bundle” of tokens. In particular, these “bundles” are new, not long-term holdings.
Furthermore, he pointed out that many top holders have never actually purchased a token. Instead, they received them through transfers or splits from other wallets.
This further encourages doubts and coordinated efforts to artificially inflate the token price. So, while the latest gatherings have had massive benefits for some, its sustainability remains a topic of discussion.
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