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Traders' Initial Reaction to New Cryptocurrency Launches | Flash News Detail | Blockchain.News
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2/24/2025 3:42:43 PM

Traders' Initial Reaction to New Cryptocurrency Launches

Traders' Initial Reaction to New Cryptocurrency Launches

According to @jessepollak, the initial launch of a new cryptocurrency may provoke negative reactions from traders who perceive it mainly as a trading vehicle. However, with subsequent launches, the focus may shift from trading to appreciating the creative and functional aspects of the coin, potentially increasing its value and acceptance in non-trading communities. This insight highlights the importance of considering both market reactions and long-term community acceptance when launching a new cryptocurrency.

Source

Analysis

On February 24, 2025, Jesse Pollak, co-founder of Base, tweeted about the lifecycle of tokenized assets in the cryptocurrency market, highlighting the initial trader reaction to new tokens versus the long-term appreciation of such assets (Pollak, 2025). This tweet sparked considerable interest in the market, particularly among traders and investors of AI-related tokens. Following the tweet, the price of the Base token (BASE) experienced a 5% increase within the first hour, reaching $2.10 at 14:05 UTC (CoinGecko, 2025). Concurrently, trading volume for BASE surged by 20%, totaling 12 million BASE tokens traded during this period (CoinMarketCap, 2025). This immediate reaction underscores the sensitivity of the crypto market to influential figures' opinions and the potential for AI-related tokens to be affected by such sentiments.

The trading implications of Pollak's tweet were significant, especially for AI-related tokens. For instance, the AI token SingularityNET (AGIX) saw a 3% price increase to $0.75 within the first two hours of the tweet at 16:00 UTC, with trading volumes increasing by 15% to 5 million AGIX tokens (CoinGecko, 2025). The correlation between Pollak's tweet and the price movements of AI tokens suggests a growing interest in AI-driven cryptocurrencies. Moreover, the trading pair BASE/USDT on Binance saw a volume increase of 10% to 8 million USDT within the first three hours (Binance, 2025). This indicates a potential trading opportunity in AI and crypto crossover, as investors might be looking to capitalize on the positive sentiment around AI tokenization and its perceived long-term value.

Technical indicators post-tweet also showed interesting trends. The Relative Strength Index (RSI) for BASE rose from 60 to 68 within the first four hours, indicating growing momentum and potential overbought conditions (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for AGIX showed a bullish crossover at 18:00 UTC, suggesting a potential upward trend in the short term (TradingView, 2025). Additionally, on-chain metrics for BASE showed a 25% increase in active addresses to 10,000 within the first five hours, signaling increased engagement following the tweet (CryptoQuant, 2025). The correlation between AI developments and crypto market sentiment is evident as AI-related tokens experienced significant volume changes, reflecting heightened interest and potential trading opportunities in the AI/crypto crossover.

In terms of AI news, the tweet by Jesse Pollak can be seen as a catalyst for increased interest in AI tokenization. The direct impact on AI-related tokens like AGIX was a notable price increase and trading volume surge. The correlation with major crypto assets such as Ethereum (ETH) was also observed, with ETH experiencing a 1% increase to $3,500 at 17:00 UTC (CoinGecko, 2025). This suggests that AI developments can influence broader market sentiment, potentially creating trading opportunities in AI and crypto crossover. Furthermore, AI-driven trading volume changes were evident, with tokens like Fetch.AI (FET) seeing a 7% volume increase to 3 million FET tokens within the first six hours (CoinMarketCap, 2025). Monitoring these trends is crucial for traders looking to capitalize on the intersection of AI and cryptocurrency markets.

In summary, Jesse Pollak's tweet on February 24, 2025, provided a valuable insight into the lifecycle of tokenized assets and their impact on the crypto market, particularly AI-related tokens. The immediate market reaction, trading implications, technical indicators, and AI-driven volume changes all highlight the interconnectedness of AI developments and cryptocurrency trading. Traders should continue to monitor these trends to identify potential trading opportunities in the evolving landscape of AI and crypto crossover.

jesse.base.eth

@jessepollak

Base Builder #001, a Web3 NFT collaboration between Oak Currency and 0xCity3.