Showing posts with label manipulation. Show all posts
Showing posts with label manipulation. Show all posts

December 21, 2017

Be Smart dont sell your Bitcoin or Steem cheap to the wallstreet traders

By bitcoincompany - December 21, 2017 (

Be smart guys wallstreet is trying to get some cheap bitcoin dont sell any of your coins for now holdd together and let them buy after us please share this..

please resteem upvote share if you love bitcoin and steem.

Closing summary: Bitcoin futures fall as CME trading begins

Time for a recap.

Bitcoin has made a subdued debut onto the world’s largest futures exchange, as a series of politicians and officials voiced concerns about the digital currency.

The Chicago Mercantile Exchange (CME) became the second exchange to offer bitcoin derivatives trading last night. And right now, bitcoin futures contracts which settle in 2018 have all fallen below their opening value.

The January 2018 contract, which initially spiked over $20,000, has now dropped back to $18,920 - having been originally priced at $19,500.

Contracts that mature in February, March and June are all in the red (although they’ve received little attention compared to the January option).
Bitcoin futures: all down today
Bitcoin futures: all down today Photograph: CME

Futures contracts allow traders to bet against an asset, so today’s moves could suggest that bitcoin’s stunning rally is running out of steam. But, less than 1,000 contracts have been traded today (each one is worth 5 bitcoins).

The spot price of bitcoin has also dipped, currently down 1.6% at $18,640 - having hit a new alltime high near $20,000 last night.

CME’s launch of bitcoin futures was accompanied by a series of warnings. For example:

Warning: Crypto whales selling to the little guy

By Stephen Alpher - December 21, 2017 (

In keeping up with acceptable crypto-community behavior, many of the large crypto holders cashing out are portraying the move as noble act, writes Lionel Laurent.

The fact remains, however, that the Emil Oldenburg's and Charlie Lee's of the industry are selling after massive moves higher. The buyers are the little guys: Since the start of 2017, there's been an explosion of accounts holding tiny amounts of Bitcoin (0.1 or less), and a corresponding tumble in accounts holding sizable amounts.

Laurent: "It will be hard to ignore the niggling feeling that the latecomers piling into Bitcoin at the end of 2017 aren't quite as astute as the early birds who are getting out."

December 19, 2017

Whales at play - Pumps and dumps and Altcoin volatility

Cointelegraph - December 19, 2017 (

WARNING: This is an observation not FUD, HODL till the end.

All cryptocurrencies going from green to red in an hour is not a coincidence.

In the last 24 hours the cryptocurrency market has seen massive gains and then in the span of an hour, huge losses.

Is Wall street to Blame? Is it Whales from China? Or a new Mega Pump and Dump Group on Telegram.

Best place to keep your coins is a hardware wallet.
Ledger Nano S is the majority choice:
Ledger Nano S - The secure hardware wallet

December 08, 2017

The Bitcoin Whales - 1,000 people who own 40% of the market

By Olga Kharif - December 08, 2017 (

Illustration: Patrik Mollwing for Bloomberg Businessweek

On Nov. 12, someone moved almost 25,000 bitcoins, worth about $159 million at the time, to an online exchange. The news soon rippled through online forums, with bitcoin traders arguing about whether it meant the owner was about to sell the digital currency.

Holders of large amounts of bitcoin are often known as whales. And they’re becoming a worry for investors. They can send prices plummeting by selling even a portion of their holdings. And those sales are more probable now that the cryptocurrency is up nearly twelvefold from the beginning of the year.

About 40 percent of bitcoin is held by perhaps 1,000 users; at current prices, each may want to sell about half of his or her holdings, says Aaron Brown, former managing director and head of financial markets research at AQR Capital Management. (Brown is a contributor to the Bloomberg Prophets online column.) What’s more, the whales can coordinate their moves or preview them to a select few. Many of the large owners have known one another for years and stuck by bitcoin through the early days when it was derided, and they can potentially band together to tank or prop up the market.

“I think there are a few hundred guys,” says Kyle Samani, managing partner at Multicoin Capital. “They all probably can call each other, and they probably have.” One reason to think so: At least some kinds of information sharing are legal, says Gary Ross, a securities lawyer at Ross & Shulga. Because bitcoin is a digital currency and not a security, he says, there’s no prohibition against a trade in which a group agrees to buy enough to push the price up and then cashes out in minutes.

Bitcoin: What’s Coming in the Year Ahead

Regulators have been slow to catch up with cryptocurrency trading, so many of the rules are still murky. If traders not only pushed the price up but also went online to spread rumors, that might count as fraud. Bittrex, a digital currency exchange, recently wrote to its users warning that their accounts could be suspended if they banded together into “pump groups” aimed at manipulating prices. The law might also be different for other digital coins. Depending on the details of how they are structured and how investors expect to make money from them, some may count as currencies, according to the U.S. Securities and Exchange Commission.

Asked about whether large holders could move in concert, Roger Ver, a well-known early bitcoin investor, said in an email: “I suspect that is likely true, and people should be able to do whatever they want with their own money. I’ve personally never had time for things like that though.”

“As in any asset class, large individual holders and large institutional holders can and do collude to manipulate price,” Ari Paul, co-founder of BlockTower Capital and a former portfolio manager of the University of Chicago endowment, wrote in an electronic message. “In cryptocurrency, such manipulation is extreme because of the youth of these markets and the speculative nature of the assets.”

The recent rise in its price is difficult to explain because bitcoin has no intrinsic value. Launched in 2009 with a white paper written under a pseudonym, it’s a form of digital payment maintained by an independent network of computers on the internet‚ using cryptography to verify transactions. Its most fervent believers say it could displace banks and even traditional money, but it’s only worth what someone will trade for it, making it prey to big shifts in sentiment.

Like most hedge fund managers specializing in cryptocurrencies, Samani constantly tracks trading activity of addresses known to belong to the biggest investors in the coins he holds. (Although bitcoin transactions are designed to be anonymous, each one is associated with a coded address that can be seen by anyone.) When he sees activity, Samani immediately calls the likely sellers and can often get information on motivations behind their sales and their trading plans, he says. Some funds end up buying one another’s holdings directly, without going into the open market, to avoid affecting the currency’s price. “Investors are generally more forthcoming with other investors,” Samani says. “We all kind of know who one another are, and we all help each other out and share notes. We all just want to make money.” Ross says gathering intelligence is legal.

Ordinary investors, of course, don’t have the cachet required to get a multimillionaire to take their call. While they can track addresses with large holdings online and start heated discussions of market moves on Reddit forums, they’re ultimately in the dark on the whales’ plans and motives. “There’s no transparency to speak of in this market,” says Martin Mushkin, a lawyer who focuses on bitcoin. “In the securities business, everything that’s material has to be disclosed. In the virtual currency world, it’s very difficult to figure out what’s going on.”

Ordinary investors are at an even greater disadvantage in smaller digital currencies and tokens. Among the coins people invest in, bitcoin has the least concentrated ownership, says Spencer Bogart, managing director and head of research at Blockchain Capital. The top 100 bitcoin addresses control 17.3 percent of all the issued currency, according to Alex Sunnarborg, co-founder of crypto hedge fund Tetras Capital. With ether, a rival to bitcoin, the top 100 addresses control 40 percent of the supply, and with coins such as Gnosis, Qtum, and Storj, top holders control more than 90 percent. Many large owners are part of the teams running these projects.

Some argue this is no different than what happens in more established markets. “A good comparison is to early stage equity,” BlockTower’s Paul wrote. “Similar to those equity deals, often the founders and a handful of investors will own the majority of the asset.” Other investors say the whales won’t dump their holdings, because they have faith in the long-term potential of the coins. “I believe that it’s common sense that these whales that own so much bitcoin and bitcoin cash, they don’t want to destroy either one,” says Sebastian Kinsman, who lives in Prague and trades coins. But as prices go through the roof, that calculation might change. 

BOTTOM LINE - It’s not necessarily illegal for big holders of some cryptocurrencies to discuss trading with one another. That puts small buyers at a disadvantage.

November 27, 2017

Bittrex issues a warning about cryptocurrency Pump and Dumps

By Kai Sedgwick - November 27, 2017 (

Pump and dumps, which have long been synonymous with cryptocurrency markets, are facing a clampdown. Bittrex has emphasized its determination to combat the practice, which persists on several exchanges. In an update to its terms of service, Bittrex reiterated that it takes a dim view of pump and dump schemes, and will suspend accounts found to have been participating in such activity.

What Goes Up…

Pump and dumps were around long before cryptocurrency – and indeed the internet – became a thing. They can be traced back to the stock markets, as immortalized in Jordan Belfort’s penny stocks scene from The Wolf of Wall Street.

 In the altcoin era, there are mainly two forms these controversial schemes take:

Fake News: Using message boards, social media, and blogs, a particular cryptocoin is hyped and shilled, sometimes with screenshots of fake news regarding new platform developments, exchange listings, and mainstream partnerships. The aim is to get buyers to snap up the coins, thereby inflating their price before buyers who got in early can dump their holdings and perform a sharp exit. This behavior can take place over a period of hours, days, or weeks.

Flash Pumps: The other principal pump and dump involves members of a closed group who are all in on the scam. When the name of the coin to be pumped is announced, it’s a race to buy in and then dump it on the stragglers before they in turn do the same with buyers who come after them. It’s essentially a game of chicken: a contest to see who’ll blink first and offload their holdings. A huge vertical green candle followed by a corresponding red one characterizes flash pumps, which can rally and crash in a matter of minutes.

…Must Come Down

Telegram groups with names such as Crypto4pumps and Bigcryptopumps conspire to pick micro-cap coins with low volume, often on the Bittrex exchange. Currently the world’s second largest bitcoin exchange, with a 24-hour volume of $1.2 billion, Bittrex is a prime target. The site lists almost 300 coins and tokens, many of which have minimal sell walls, making them vulnerable to manipulation.

In a recent update to its trading policy, Bittrex announced that “stale” orders of more than 28 days would be removed and the minimum trading order size would be increased. It concluded with a “general statement about market manipulation tactics”, writing:

"Bittrex actively discourages any type of market manipulation, including pump groups.  Consistent with our terms of service, we will suspend and close any accounts engaging in this type of activity and notify the appropriate authorities."

Pump Up the Volume

Prohibiting P&Ds and preventing them are two very different matters of course. Coins that have rapidly appreciated in value are prominently displayed on the frontpage of Bittrex, luring in more buyers. Be it due to greed or FOMO, some traders blindly follow the green candles, chasing pumps with scant consideration for the reason behind the coin’s sudden spike.

Less charitable souls will say that investors who don’t perform their own research deserve everything they get. Nevertheless, as cryptocurrency goes mainstream, rampant manipulation of coins does little to endear the already volatile markets to new entrants. An influx of institutional money has helped the cryptocurrency markets swell to nearly $300 billion. The wild west days of the earliest bitcoin exchanges are long gone; perhaps it’s time that pump and dumps were also laid to rest.

Just a handful of the altcoins to be found on Bittrex.

Traders who recall bitcoin’s earliest days may shed a wry smile at the mention of such words as ‘Fontas’ and ‘trollbox’. It was a time when every coin had a small market cap and currencies such as Peercoin and Feathercoin were sent to the moon on Btc-e before plummeting into the abyss. For so long as illiquid coins continue to be listed on major exchanges, P&Ds will continue to happen. Newcomers to the space, who are intrigued by the get-rich-quick promise of such schemes, would do well to learn that the most profitable move is often to buy bitcoin and hold. It’s one of the few trading strategies that’s been shown to consistently pay dividends.

Images courtesy of Shutterstock, Bittrex.

Kai Sedgwick

Kai's been assembling words for a living since 2009 and bought his first bitcoin at $19. It's long gone. He's previously written white papers for blockchain startups and is especially interested in P2P exchanges and DNMs.

November 10, 2017

New pump cycle pushes Bitcoin Cash price to $815

JP Buntinx - November 10, 2017 (

It is safe to assume the Bitcoin Cash price is being heavily manipulated right now. While this doesn’t mean the altcoin is overvalued per se, there are some interesting things happening in the trading department. With a current Bitcoin Cash price of over US$800, someone is clearly trying to push up the value of this altcoin. The latest pump comes on the heels of a previous one which ended not too long ago.


Last week, we saw some major gains for Bitcoin Cash appear out of the blue. There was no real reason for a steep Bitcoin Cash price increase, and there isn’t one today either. Regardless of the sentiment, the price is effectively moving up and doing so at a very quick pace. The people who bought BCH at US$350 two weeks ago will be very happy with their investment, as they’ve more than doubled their money by continuing to hold it today.

Although it remains to be seen if a lot of people resisted the temptation to sell at US$600 last week, the current momentum is pretty spectacular. With the Bitcoin Cash price rising by another 31% out of the blue, this altcoin seems underway to reach a new all-time high. This is all happening while the Bitcoin price is massively struggling for traction, especially now that the SegWit2x hard fork news has caused so much confusion.

It is possible this new Bitcoin Cash price pump is a direct result of the shenanigans involving SegWit2x. People tend to forget that a lot of SegWit2x backers are also the ones advocating Bitcoin Cash the hardest right now. For all intents and purposes, we may be witnessing one of the biggest “politically-oriented coins” in Bitcoin history right now. It is evident the Bitcoin network has some scaling issues to overcome, whereas Bitcoin Cash solved this problem by upping the block size to 8MB directly.

With over US$2.14 billion in 24-hour trading volume, things are looking pretty good for Bitcoin Cash right now. This trading volume is not too far behind Bitcoin’s, which is pretty impressive in its own regard. It is also well ahead of any other alternative cryptocurrency currently in the top 10. The bigger question is how much of this volume represents genuine interest in BCH rather than speculation. That number is probably a lot lower than what some people may proclaim it to be.

As is pretty much always the case, Bithumb has taken care of almost half of all BCH trades over the past 24 hours. Bitfinex and Coinone round out the top three, although Korbit and HitBTC are not too far behind. It is evident South Korea has solidified its position as a global cryptocurrency trading powerhouse these past few weeks. Bithumb especially is generating a lot more volume than most Chinese exchanges were ever capable of.

In the end, the lingering question is whether or not the Bitcoin Cash price momentum can be sustained for a long period of time. We have now seen two extended pumps in quick succession, which further confirms there is nothing natural about this growth whatsoever. There are still a lot of holders who never sold their coins since day one. Once these people start unloading BCH, things will get very interesting, to say the least. It is a great altcoin for some quick profits, though; that much is certain.

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.