Kucoin Issues a Warning After Bitcoin Diamond Soars 40x and Then Crashes

The bitcoin community is, appropriately, split when it comes to forks. Some see these airdropped coins, which are issued to existing bitcoin holders, as an egalitarian distribution strategy that creates an instant user base and active community. Others aren’t so sure, questioning the motives behind these projects and the lack of infrastructure support.

Bitcoin diamond (BCD) was distributed at a BTC rate of 10:1 when it was released in late November. Within days, the forked coin had settled into a price bracket around the $30 mark, and with major exchanges such as Bitfinex and Bittrex refusing to touch it, diamond seemed destined to remain languishing in the doldrums. But in the trading stakes – or rather the pump and dump stakes – every coin has its day, and Saturday was BCD’s.

In a matter of minutes, the coin multiplied 40x on Kucoin, sending it over $800 and causing one of the largest green candles ever witnessed on an exchange. The movement prompted Kucoin to issue the following warning to its customers:

Night of the Long Forks

Starting on the evening of Friday January 12, traders went long on many of the bitcoin forks that have been created in recent months. Predictably, the action seemed to emanate from the Asian markets, before impacting on all global exchanges that supported the coins. Due to the low price of many of these coins – bitcoin file costs around $0.2 for example – coupled with low trading volume, orchestrating pumps is relatively easy.

For anyone who FOMOs hard and piles into these rising green candles, however, there is a high risk of failure. BCD’s meteoric movement was evidently an orchestrated P&D. Many traders, unaware of the pump and dump taking place, will have had sell orders set for bitcoin diamond. Once the scheme kicked in, eating through that resistance was a doddle.

The majority of forked coins have few real use cases, but the events of the past 24 hours may entice traders to set and forget their airdropped coins from now on. Given the meagre sums to be made from trading these coins at their regular price, it makes more sense to set an unrealistically high sell order, just in case the unthinkable happens.

Comments

EZeugo Is the Right Candidate For Idemili North Constituency.

A sound mind is a healthy body, unfortunately most of our people suffer from various diseases as a result of their life style,water the drink, type of food the eat (poor dieting) and drugs abuse which in return leads to many complications in the later stages of their lives. Majority of our people over the age of fourty suffer from specific health problems E.g heart diseases, advanced diabetes, blood pressure (BP). In my view the issue of health is not limited to health services, health is a specific culture that can be attened by harmonizing body and mind. To reach this health conditions, in addition to a good healthy services, base on my background in Health and Environmental Safety (HES) I Ezeugo have a good health investment programs that will help improve following area - health education, Custom and traditions, food and environmental hygiene, sports, provisions of safe drinking water, public awareness in various aspects of life. Ezeugo have all it take to make Idemili...

Bitflyer Launches in Europe – Now Licensed on Three Continents

Bitflyer Launches in Europe Bitflyer announced its European exchange launch on Monday. Its announcement states: Having been granted a Payment Institution (PI) license to operate in the European Union, it has become the first bitcoin exchange to be regulated in Japan, the US and Europe, making it the most compliant virtual currency exchange in the world. The company’s European exchange, headquartered in Luxembourg, was launched through Bitflyer Europe S.A., a wholly-owned subsidiary of the Tokyo-based Bitflyer Inc. The company has been granted a PI license by the Luxembourg regulator, Commission de Surveillance du Secteur Financier (CSSF). Pierre Gramegna, the Luxembourg Minister of Finance, commented, “We’re delighted that one of the most successful Japanese startups chose Luxembourg as their EU platform.” Bitflyer CEO Yuzo Kano with Luxembourg Minister of Finance Pierre Gramegna. (Photo: Business Wire) More Cryptocurrencies Coming Soon For the grand openi...

Real Cryptos Reside on Your Cellphone

The internet was born on desktop devices but it now resides in our pockets – or more often our palms, since we rarely stop using our mobile devices long enough these days to put them away. When Satoshi published his white paper in October 2008, desktop was still the preferred means of doing business on the web, but all that was about to change. 14 months earlier, Steve Jobs had unveiled the iPhone, ushering in the stirrings of what would become the mobile revolution. Meanwhile, Satoshi was quietly getting on with his own cryptocurrency revolution. By late 2010, Satoshi had checked out, but the seed he had sown was sprouting into a digital money tree that was growing fast. By 2016, mobile web usage outstripped desktop usage, and the crypto economy, which had stagnated for the last two years, exploded into life. Suddenly everyone was releasing coins and tokens, many of which were mobile-oriented, and everyone was tweeting, Snapchatting and vlogging about crypto. There was just one p...

MarcFarms™

Search This Blog