Jan 17, 2020 02:30 UTC
Jan 17, 2020 at 02:30 UTC
Wash Trading Behind Bitcoin SV Pump, As Dump Accelerates
The overall cryptocurrency market capitalization has declined two or three percent overnight as altcoins correct from enormous additions this week. Most are possibly in the red, however, the one that drove the bull run is dumping twofold digits driving examiners to scrutinize its legitimacy in any case.
Since its FOMO driven surge to top $430, BSV has slammed over half in a slide back to $290. It has just lost the 4th opening back to BCH which has clutched a large portion of its ongoing increases.
Currently, Bitcon SV is the worst performing altcoin in the top 100 and the only one dumping twofold digits.
The pump was driven by theorists responding to bits of gossip that Craig Wright really approaches a ‘Tulip Fund’ supposedly containing millions wort of BTC mined during the beginning of the asset’s existence.
Nicholas Merten, a cryptocurrency YouTuber, delved into the data to unveil that actual BSV volumes were extremely low.
“Only $35.6M of volume is from exchanges open to US traders. The other 99.4% of daily volume is made up of mainly no-name exchanges and known wash trading exchanges that still deceive this space. They can basically dictate a false price.”
Ignore the price moves of $BSV. Only $35.6M of volume is from exchanges open to US traders. The other 99.4% of daily volume is made up of mainly no-name exchanges and known wash trading exchanges that still deceive this space. They can basically dictate a false price.
— Nicholas Merten (@Nicholas_Merten) January 14, 2020
Wash trading is a market manipulation where selling and buying orders are placed on the same asset. It is generally used o fake the data from obscure cryptocurrency exchanges or to falsify the price of an altcoin, in this case, Bitcoin SV.
Dalmas Ngetich, a cryptocurrency writer, joined the digital dots adding that the BSV market capitalization was actually lower than its 24-hour volume at one point.
Isn't it weird that the market cap of #BitcoinSV is LOWER than its 24HR trading volumes. This is a recipe for disaster IMO. Absurd! #BTC #Bitcoin #BSV. Treading on this ice now! pic.twitter.com/CHl3DEpfdV
— Dalmas Ngetich (@Dalmas_Ngetich) January 15, 2020
The market correction has been anticipated yet the sentiment is still bullish following the gains of 25% this year for overall cryptocurrency capitalization.