Was this insider trading?

in #cryptocurrency6 years ago

I noticed this post on Reddit a couple of days ago. We were at $930 then. Oh how fast has the price come down. Just a couple days to crash the price from $930 to $600. In any case, the post showed an unknown whale mysteriously market selling $15 million worth of ether on Gemini at $930. The whale did the selling over 6 market sells, crashing the price on Gemini from $930 to $800 each time.

As expected, the post was met with incredulity and many were dismissive. Some called it stupid money. The top comment of the post was "Well that was dumb of them". Fast forward to today, this turned out to be any incredibly smart move.

But if you think about this again, you realize that this was actually an incredibly irrational sell, unless you knew something was going to happen. Why sell $15 million worth of ether so quickly such that you burn the order book down $130, and do it 6 times? Wouldn't it be better to structure sells so that you get the optimal price? This decision only becomes rational if the seller knew something was going to happen. Something big, like a huge market selloff from $930 to $600 in 48 hours?

It is also possible this is something more sinister. When the massive selling happened, ether's price was at a critical 2 hour support at the 2-hour 20 sma (which is the center line of the Bollinger Bands). If you do any day trading, you know that BBs are incredibly popular among day traders. At the time when the Gemini market sells occurred, price was at $930, exactly on the 20 sma line. Exactly. And just like that you start seeing people and bots who got in at ultra low prices immediately sell their ethers at $930, pushing the price down past the 20 sma line. Once that critical support broke, traders followed suit and sold into the breakdown.

The breakdown at the 2 hour 20 sma line support was the start of this massive market crash. Did this mysterious whale sacrifice $15 million in almost irrational market sells in order to trigger the crash? Sounds like a conspiracy theory but maybe that's what the market manipulators want us to think.

More reading


The graphs showed it all thanks for the info.

All to buy in cheaper, in the last hour ETH recovered 10%, let's see if it goes back to $900 today.

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