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Bitcoin forks BCH, BSC and XEC soared last month, but are the gains organic and sustainable?

Bitcoin forks BCH, BSC and XEC soared last month, but are the gains organic and sustainable?

The start of June saw negative price action across the cryptocurrency market after the U.S. Securities and Exchange Commission brought fresh lawsuits against the world’s largest exchanges, Binance and Coinbase.

However, the sentiment quickly turned bullish after a crucial exchange-traded fund proposal was filed by the world’s largest asset management firm, BlackRock, on June 16. A wave of ETF fillings and institutional trading interest in digital assets followed BlackRock’s ETF filling.

The launch of EDX Markets backed by Wall Street giants Fidelity Investments, Citadel Securities, and Charles Schwab on June 20 fueled a particular sector of the market in Bitcoin forks like Bitcoin Cash (BCH) and Bitcoin SV (BSV) and other proof-of-work (PoW) cryptocurrencies like Kaspa (KAS).

The exchange debuted with Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and BCH. The inclusion of BCH catalyzed an uptrend across other Bitcoin forks.

Among the top gainers in June, three Bitcoin forks populated the list, followed by Kaspa and FLEX Coin (FLEX). FLEX benefited from its integration with Open Exchange, backed by co-founders of the bankrupt Three Arrows Capital digital fund.

The top five performing coins in June. Source: CoinGecko

In comparison, Bitcoin’s monthly gains stood at 11.94%, as it traded above the $30,000 level for the first time since April 2023.

CoinFlex (FLEX) receives short-term boost from link with 3AC co-founders

CoinFlex announced a transition to bankruptcy claim exchange, Open Exchange (OPNX), in May 2023. The token’s price reached a 13-month high of $4.37 on June 27.

Open Exchange is backed by co-founders of now bankrupt venture fund, Three Arrows Capital. Reportedly, the co-founders face $1.3 billion in liability from their actions that exacerbated the losses of the fund.

Still, the duo continued to endorse Open Exchange under a new venture fund, under the same brand as their previous fund.

CoinFLEX took an approval for a restructuring of its exchange from the Seychelles courts on March 6. Its integration with Open Exchange imparts utility to the FLEX in OPNX to settle claims and earn staking rewards.

Notably, as FLEX prices surged to 2022 peak levels, the trading volumes remained subdued at around 0.01% of the $1 billion daily volume versus now, which raises a red flag.

It represents a case of significant volatility in illiquid assets. Due to their limited liquidity, it can be easier to push the price of these coins compared to larger, more liquid…

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