Traders Are Paying 2,000% to Buy CYBER as Social Network’s Tokens Soar

But CyberConnect runs the risk of being the latest crypto fad. Similar projects, such as Friend.tech, which lets X personalities create token-gated chat groups, gained meaningful popularity only to see revenue drop 95% in just over three weeks.

CyberConnect lets developers create applications related to digital identity, content and friendships on the blockchain. It also offers CyberGraph, a smart contract to record users’ content and social connections, and CyberID, an ERC-721 token that represents a unique handle for user accounts within the CyberConnect ecosystem.

Funding rates, which are periodic payments traders on perpetual futures markets pay to their counterparties, have soared to as much as an annualized 2,190% on Bybit and Bitget and as high as 1,500% on Binance.

The rates are determined by the difference between spot and futures contract prices. When futures cost more than spot, traders with long positions pay a fee to traders with short positions. The positive funding rates for CYBER suggest speculators are bullish, and long traders are paying out.

CYBER funding rates. (Coinglass)

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Most of the trades are taking place on Binance, data shows, with the exchange accounting for 74% of all CYBER volume. This is followed by the Korean exchange UpBit, which traded $70 million worth of the tokens.

Friend.tech launched on Aug. 10 and racked up some 4,400 ETH (about $8.1 million) in trading volume on the first day, growing further as a slew of personalities outside of crypto circles on X, formerly Twitter, joined the platform and fueled its popularity.

Data shows transactional activity on the platform peaked at $16 million on Aug. 21 before slumping to just over $700,000 as of Thursday – a 95% drop. New users have stopped coming in, even as active usage remains the same over a weeklong period.