Toko token (TKO) price made a stark jump on Monday, December 19, to reach a high of $0.4131, marking the highest level since December 9. The surge happened despite continued industry concerns about the stability of the crypto market and the future of the digital asset industry.
The recent surge was attributed to a move by Binance to inject more cash into the project, increasing its stake in the Indonesian cryptocurrency exchange. Tokocrypto’s native token TKO went up 40% as the market hoped the new capital injection was part of Binance’s plan to acquire the Indonesian exchange. However, Binance CEO Changpeng Zhao has come forward in addressing the speculated takeover.
Binance was the majority shareholder of Toko from the beginning. Just injected more cash and increased our shareholding a bit. pic.twitter.com/NIeYYxzPdU
— CZ ? Binance (@cz_binance) December 19, 2022
Binance, which invested in the Indonesian crypto exchange in 2020 and 2021, said that it will “gradually grow its investment in Tokocrypto to nearly 100%”.
At the time of this writing, TKO price on CoinGecko was hovering around $0.3169, up by 7.4% over the past 24 hours, bringing its market cap to $844.27 billion with a 24-hour trading volume of $43.86 billion. However, following news of layoffs and hints of the exchange possibly halting business unit operations and activities, TKO price risks a further 40% losses, losing all the ground it covered on Monday.
Tokocrypto Exchange News
This development comes barely a fortnight after initial reports hinted at Binance’s plans to buy Tokocrypto, the first regulated crypto exchange in Indonesia (2020), registered under the Trade and Futures Exchange Ministry (BAPPEBTI). Consequent to the purported takeover, Tokocrypto co-founder and CEO Pang Xue Kai will be stepping down from his current role, with Yudhono Rawis taking over office as provisional CEO until the buyout process concludes.
Nevertheless, Xue Kai will retain his position on the Tokocrypto Board of Commissioners, alongside other forms of support to the new leadership of the exchange. According to Kai, the decision was arrived at after a close examination, which he believes will pan out as the best move toward helping Binance improve the Indonesian trading platform.
Tokocrypto Reportedly Lays Off 58% of Employees
Besides news about the acquisition and Binance increasing its shares at Tokocrypto, Coindesk Indonesia has also reported that almost 58% of Tokocrypto’s employee count was terminated. The move was part of the exchange’s intention “to focus on business unit exchanges, so business unit operations and activities will be temporarily halted.”
Riding on this speculation, the exchange’s volumes dropped quite a bit, which was also fueled by news of a new tax introduced, according to Binance’s CZ.
Indonesia exchange volumes dropped quite a bit after the new tax introduction.
— CZ ? Binance (@cz_binance) December 19, 2022
The Indonesian exchange also assured its clients that it will offer full support to the laid-off staff, ensuring and assuring that the adjustments will not affect the company’s business operational standards.
The 58% job termination adds to the company’s personnel retrenchment this year, as Tokocrypto already reduced its workforce by 20% in September citing the ongoing crypto winter.
Currently, cryptocurrencies are trading at a significant discount in the wake of continued macroeconomic crises, including the collapse of powerhouse companies like crypto bourse FTX, Celsius Network, and Terraform Labs, which severely weakened the confidence investors have in the risk assets.
At the same time, Binance has been preying on licensed and regulated crypto firms as part of their foray into targeted markets and continued expansion. Most recently, Binance acquired the Sakura Exchange Bitcoin, swinging open the gates into the Japanese market.
The news of Tokocrypto exchanges laying off 58% of its workforce, coupled with the management change and other news surrounding certain readjustments in the exchange that may require temporary halting of its offerings, TKO risks losing all the ground it covered in the last 24 hours.
Will Toko token Record Further 40% Losses?
TKO price action between mid-November and December 6 saw the exchange token surge 152%, before being turned by seller congestion around the $0.43 area.
Normally, asset prices have a tendency to deviate from key support levels before falling back to the zones to set a launching pad. If the TKO price falls back to the price range where the moving averages lie, then the token could revisit the $0.22 support floor.
In a possible move, however, the Toko token could tag the $0.17 swing low, thereby completing the inverted V-shaped retracement. If this happens, it would mean a 42% drop from the current levels.
While the relative strength index (RSI) was moving upward toward the positive region, the Moving Average Convergence Divergence (MACD) indicator was moving downwards, indicating the likelihood of such a correction. Note that TKO’s toward trajectory will gain more traction once the MACD crosses the zero line into the negative region.
TKO/USD Daily Chart
On the other hand, TKO price retesting either of the two barriers mentioned above would provide buyers with a buying opportunity into TKO at a discount, triggering an uptrend that could potentially push Tokocrypto price higher. The upswing following such an outcome would likely catapult the TKO token to retest the range high of $0.43.
Should the TKO price overcome this hurdle, then the path to the $0.5 swing high or the $0.6 psychological level would be open, a move constituting a 100% climb from the current levels.
The technical and fundamental analyses above indicate that TKO investors should be worried about the possibility of the Toko token turning away from the current price. The Tokocrypto ecosystem rides on the delivery of crucial news around Binance. If the giant crypton exchange communicates another milestone, the potential for further price appreciation is likely.
Other Tokens To Consider For Increased Returns
Calvaria is now in the fifth and final stage of the presale where only 13% of the presale tokens are left. So far the project has raised $2.5 million just within weeks, bolstering the strong fundamentals and promise of the project.
Calvaria is game-oriented crypto that has sprinted its way to the list of top crypto gainers owing to its unique applications capable of increasing the rate of adoption for blockchain gaming. Calvaria’s RIA token will be listed on BKEX, alongside another partnership with GotBit.
— Calvaria: Last Stage Presale is Live! ✨ (@CalvariaP2E) December 20, 2022
If you are interested in getting in early, visit Calvaria.io to get started.
FightOut is a crypto platform that uses a fitness app and a chain of gyms to incentivize the fitness lifestyle. It offers gamers a chance to earn rewards for completing workout tasks and challenges. Beyond that, on-platform users also have a chance to grow within an interactive community.
At the core of the FightOut ecosystem is a tokenized economy wherein users earn FGHT tokens for completing the move-to-earn (M2E) tasks.
FightOut is also set to upholster the fitness economy with Web3 solutions where users can create accounts and mint their own digital NFT avatars that will have a role in the metaverse.
Wish me luck ?? pic.twitter.com/H1ilVoVCwc
— AbangMei (@Saputra14948488) December 20, 2022
The project is currently in the presale stage and has raised more than $2.17 million in stage one. In subsequent stages, FGHT price is expected to rise, which is why you should jump in now for discounted prices. There is also a 50% Bonus that will end once the fundraiser hits the $5m threshold. Do not miss out for any reason.