Bull market cycles in the cryptocurrency market can be exhilarating for day traders and long-term investors alike, but the speed at which the prices move can make it a challenge for promising new projects that are looking to catch the momentum before the cycle plays itself out.
This reality has led to some projects listed on exchanges in the form of token IOUs so that interested parties can get in on the trading action before the token is officially released. Polkadot (DOT) is one of the most well-known examples of a token that went through this process.
Casper (CSPR), a proof-of-stake blockchain platform, is a relatively new project that has benefited from this IOU process, and its token value has made significant gains since the end of its initial coin offering on April 7 when early investors were able to acquire the altcoin for $0.03.
Data from CoinMarketCap shows that the price of CSPR has vaulted 2,300% higher since May 6, jumping from a low of $1.15 to a record high at $28 on May 10 as excitement and trading volume surged.
Major exchange listings spark a frenzy
The CSPR IOU token was listed shortly after the completion of its ICO on some of the more obscure, low-volume exchanges like BitZ where it traded in the sub $3 range until early May.
Price action for the token started to pick up on May 7 as trading volumes began to increase ahead of the May 9 announcement that CSPR would be listed on Huobi, the sixth-largest cryptocurrency exchange, a development that was registered by the Cointelegraph Markets Pro ‘NewsQuakes’ system ahead of the price rally.
Trading volume on exchanges that list CSPR increased six-fold following the announcement and this propelled the token price 933 times higher than its ICO price just a little over a month before.
Partnerships point to significant use-case potential
A scroll through the project’s Twitter feed shows that there is more than…