The token Bricks (BRICK), created by the Fortnite community on the social media platform Reddit, has seen a surge of over 100% in the past 24 hours after losing over 80% of its value in the last two months.
Sharp Rise in Bricks’ Local Asset BRICK
According to data provided by CoinMarketCap, the price of Bricks’ local asset, BRICK, has increased by 110% in the past 24 hours, reaching $0.1226. A significant portion of the trading volume during this surge came from the Kraken exchange, and the overall trading volume for this altcoin across all cryptocurrency exchanges reached $750,000, an 800% increase in the past 24 hours.
The drop of Bitcoin (BTC) below $27,000, the largest cryptocurrency, caused selling pressure in the overall crypto market, and the reason behind this surge remains uncertain.
Bricks, an ERC-20 token distributed to active members of the Fortnite subreddit on Reddit, saw a significant increase in popularity after other Reddit community tokens like Moons (MOON) in the r/cryptocurrency subreddit gained traction in August.
Low Liquidity Poses Risks for BRICK
Furthermore, liquidity for BRICK remains low across all cryptocurrency exchanges, with the market depth on Kraken amounting to approximately $2,500 for both buy and sell sides. Market depth is considered an important metric that indicates the amount of capital required for an asset to move in a certain direction, and currently, it is at a very low level for BRICK.
Low liquidity after a significant price increase signals high risk for investors, as the price can be easily manipulated with minimal effort and can result in substantial losses for investors who buy in fear of missing out (FOMO).
