A Theory About Recent Altcoin Pumps
"It's almost starting to look like a rotation from one altcoin to the next"
Tim Enneking, chairman of Crypto Asset Management
I saw that line in a recent CoinDesk article when I tried to understand why Ripple had sky-rocketed over the weekend while I was out camping. It stuck with me as it seems so many different altcoins have experienced significant pumps recently.
So what's the deal?
I don't know, but I thought of a possible theory. What if the stock market is finally ready to reverse it's bull run in a big way and major institutions are testing each altcoin market to determine the liquidity they can withstand given a major influx of new value?
What do you think?
What's been going on in the crypto markets lately?
Reminder: You're welcome to my free spreadsheet for keeping track of your crypto investments. It's pretty sweet.
We are at the beginning of the "S" curve of a new technology and the early adoption stage is happening now. Ripple also announced some big investor interest over the weekend. Numerous big banks are getting on board. The market leaders are also sorting themselves out and this year will be significant. The stock market is also going to head south very soon so numerous banks and other lenders will be getting involved with Ripple (bankers coin with 100 billion pre-mine so be wary) and numerous other coins like ETH, Augur, ETH Classic etc. I feel Ripple is here to stay and will be working hard to legitimise itself within a competitive market. It will seek strength at $10+ per coin and I feel we can't even comprehend where it will go beyond that especially if Bitcoin, Dash and others go well beyond their current positions. BTS is my next long term hold pick based on technology, development, speed and security. (Not Financial Advice)
I've also been really excited with BTS and have been buying it up a bit the last couple weeks. Haven't got some Augur yet, but I'm interested in that too.
BTS will move and is moving. It will be a slower climb due to lower initial interest and financial investors however will get stronger in time as the market gains overall strength and confidence at a mainstream level. I am excited, nervous and anxious all in one and just throwing all I have into it and just stacking when I can. Good luck to everyone and I hope this brings great change to many peoples lives for the better. :)
I am trying to learn more about BTS, can you suggest any good posts? other resources? Good observations in your first post btw.
I have been in the forums and also reading up on what Dan and Stan Larimer have put into the BTS platform. Learning more about the back end. Transaction speed, security and trading features within the wallet. Stan Larimer is still heavily involved and the projects they are working on seem to be taking the coin forward. Lots of discussion and action on end user functionality, better wallets and there is no doubt the coin has a bright future. Few more developers would help along with some public interest (marketing) and all these projects are observable through the BitShares Light 2.0 wallet. It still has a way to go. Long term stack and hold for me. (Not Financial Advice).
I have a Ledger Nano S hardware wallet that I really like, the only problem with it is it is relatively slow to update compatibility with newer coins. I am definitely going to do more research, I may download the BitShares Light 2.0 wallet and play around with it. Thanks for your insight! Much appreciated
No problem. :) We all learn from each other and hopefully we all make great decisions in the next few years. Knowledge and informed decisions is the key whilst running on gut instinct :) Definitely download the BitShares wallet. You will be pleasantly surprised at is diversity although a little overwhelming as there is a lot to absorb and understand. I am still trying to work it out. :)
Thanks alot! Followed btw :)
There are some good BTS posts here and on Google...use the search button and have a browse. all we can do is research these things ourselves to obtain the clarity we need as investors. Good luck. :)
I don't think institutional players would behave in this way. My suspicion (and I have nothing to back this up except gut feeling) is that pump groups are looking to take advantage of last month's strength in the leading coins (BTC, ETH, Dash) to stoke the flames of FOMO in altcoins which haven't done much so far.
Recently I saw a lot of coins with names suspiciously close to Bitcoin pump on Polo more or less simultaneously. BitcoinPlus and BitcoinDark come to mind... and today Bitshares is finally having its turn. My theory is someone is trying to capitalize on the rumors / fears of a Bitcoin hard fork leading to two different versions of Bitcoin, by somehow tricking people into believing one of these other coins with a similar name is actually the "split coin" already created & waiting for money to pour in.
I like that theory better than mine. Makes a lot of sense.
Glad I'm not alone in that line of thinking. I'm still pretty damn new to all this, but I remember thinking, "I shoulda had something in that coin," followed by "Wait a minute. Why that one now?"
And then another.
And then another.
It almost motivated me to spread the little bit of change I'm trading with out to multiple coins in the event one spikes. Maybe I should've followed that instinct, but I'm still not convinced I wouldn't have taken a bigger loss.
I've been somewhat involved in the crypto markets since 2013, but I don't think I've seen anything like this.
Having a variety of slices of pie in the top 20 will allow you to taste the market and possibly learn something new. I did say a "slice" and not the whole pie right?
Someone is testing something. I've heard everyone from Elon Musk to Google's youtube was pumping Litecoin as they sloshed some of their spare cash around looking for a different return - who truly knows??
Yeah, seeing litecoin and ripple get pumped, I was like, "Huh? This is crazy."
Litecoin is consolidating at its higher price quite nicely now :) THE TABBY CAT CONTINUES TO ROAR!! Good on it I say. Its been the dead nemesis of Bitcoin for far too long. Long live LTC!.. (and Steem of course!!)
It does seem like random pumping, but who knows. It has been interesting to watch. I am kind of hoping they will pump steem. I know it is usually followed by a dump, but it could be fun just the same.
Maybe they did? It went to $0.19 recently, right?
It hit $0.32 for a moment, even.
Yeah, the SBD pump was crazy also. I only had $195 in SBD at the time, but I made some quick bitcoin with it. Turned that into some Golem which had a pump or two as well.
A lot of it is also pump groups.
Interesting thought. I believe this post could be prophetic, I don't necessarily think this most recent pump is from large institutions but I think that is the next logical step. I would imagine there will be a time where "big" money and funds rush into crypto, I cannot even fathom what those prices will look like even if a small percentage of funds enter the space. BTW DASH is crashing hard today, we have a pretty good discussion going on in the comments over here https://steemit.com/dash/@digicrypt/dash-crash-how-far-will-the-price-fall
I managed to get on the Dash train and got out at over $100. It has been crashing ever since so I made the right call. I feel it is now time to invest in the coins for the medium to long term. I am not one to trade too much. I prefer to seek solid foundations. The coins with infrastructure, long term plans and the financial support required to implement the development as the ones to hold. Dash will bounce back as it has these things but who can really say what will happen. The energy of economics is also driven by emotion. The bankers coins will go up and hard as they will be seeking that legitimacy. We may as well ride the wave and then make the call when and if to exit. Seek to still support the decentralisation of our monetary system via specific coins however use this time wisely to make the best positive returns for you and your family. That is all we can do as I have said we are still in the very early stages of the "S" curve and this is where huge profits will be gained (succeeding coins with faith) and lost (failing coins with no faith). It is just matter of choosing your spread and getting out at the right time. Profit is profit. In 3 - 5 years time the 'genuine' leading coins will be a little more clearer. It will then evolve again from there no doubt as the race to implement new technology and end user functionality becomes the main focus. Exciting and terrifying all in one. :)
Again, excellent insight. You should repost this on our Dash discussion I am sure other ppl would find it valuable
https://steemit.com/dash/@digicrypt/dash-crash-how-far-will-the-price-fall
Unfortunately I am notoriously bad at timing with trading lol. Thats why I seek long term stability. I am bullish on BTC ETH and STEEM. I think Steem has huge potential! I actually expect to have a clearer vision of Steems future in the next few weeks, I think some of the moves by the new marketing team will be able to tell us alot about where it is all going. I think they have a gem, I hope they dont screw it up lol.
Steem will be around for the long term. People are emotionally invested in the platform. Very special and unique quality. Happy to repost my comment. :)
I never did get onboard the Dash train... though I am kind of curious to see if PIVX takes off. Thanks for the link, I'll check it out.
Same, the marketing always rubbed me the wrong way, I don't know why exactly. PIVX is interesting though. It is a story I will have to keep an eye on!
I actually made a large purchase of bitshares and ripple, in part due to a post of yours discussing them. Thanks for turning me on to them ;)
Diversifying alt coins seems like a smart strategy, though I intend to continue to invest in ethereum as a fallback against all others.
Wow, very cool! Congrats on timing that one right. I got int Ethereum way late and now it's only going down since I purchased. Heheh. I held off on buying it for so long because it seemed like a token not meant for holding based on how the gas works and such. But oh well, I got caught up in the FOMO, I guess.
Aliens.
Nice post. Same thoughts here. The price of a coin should depend on the quality of the product, the team behind it, if proffesional investors believe in it, and a lot more facets. I found this amazing platform: https://www.coincheckup.com I really missed a platform that analyses every single coin in depth but this site gave me all the answers.