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.
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:
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.
Content Source 1: https://news.bitcoin.com/kucoin-issues-warning-bitcoin-diamond-soars-40x-crashes/
Content Source 2: http://www.altcoinstalks.com/index.php?topic=4235.0
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