I have a question on the STEEM price?
Prices are heading up.
I'm sure everybody has seen all of the green for the past two days which is great after a long 2018. Hopefully we can sustain it for a while. Some of the prices have been shooting upwards.
STEEM has been gaining steadily since xmas really so things had been moving anyway but with the way the markets have shot up it seems to have been left behind.
Or has it?
Coinmarketcap
When I want to check prices my first stop is always coinmarketcap.com. Never even questioned it before. And if you look at the initial chart it has STEEM trading at $0.499 and plus 5.42%.
That all seems nice and steady but when you go down to the markets section you can see that 55% of the trading volume is on bithumb to KRW and the price is $0.617. That is a big difference to what they are showing on the main charts and presenting to the world.
That is closer to 25% gains today and would put STEEM as one of the biggest gainers today. Now I know that there are a lot of other trading pairs but I'm wondering why they are presenting it to the world as being on $0.50 When that is the lowest end of the chart and not an average or median price??? Which would paint a totally different picture.
Coincap
A site I had never been on was coincap but when I saw the price on steemworld.org at $0.60 I had to check it out.
This gives us a totally different view to the one on coinmarketcap.This site has us sitting at 42 rather than 50 in the rankings. It has the price at $0.605 ( average $0.547 ) Instead of $0.499 with no average given. And gains of 24.86% ahead of the 5.42% gains shown on coinmarketcap. For me this is a huge difference and a worrying one. If I was a neutral person wanting to invest in coins and looking at the rankings on coinmarketcap one of these crypto's looks a lot more appealing than the other.
It just put me wondering to the reasons behind this. That and the large discrepancy in prices shown. If anybody has a simple answer I would love to hear it.
The Korean market has always had a life of its own. I think that's probably because foreigners are restricted from trading on the Korean exchanges. That must be the case because otherwise the arbitrage opportunity would be simply too good. The only way circumvent this would be to have a trusted Korean partner who would sell STEEM on a Korean exchange on your behalf and send you the money out of the country for you to buy more cheaper STEEM on overseas exchanges. The fact that this is not done to an extent large enough to bring the prices close to each other is probably caused by fees charged by the Korean exchanges at the point of cashing out. It might be illegal, too, and constantly receiving large sums from an exchange might trigger some kind of AML alarm at the bank.
[Edit: Indeed, South Korea banned all foreigners from trading on South Korean exchanges in January last year: https://www.forbes.com/sites/elaineramirez/2018/01/23/why-south-korea-is-banning-all-foreigners-from-trading-cryptocurrency/#17ac71ec7345]
The arbitrage was one of the reasons I went looking into it. I though there was no way you could see a 20% gap on STEEM with quick, free transactions. It would be too easy to make profit. If you know any south koreans it could still be done with the right set up but would probably need to be kept to reasonable amounts.
Thanks for such a comprehensive answer for me and i can see a lot of other countries bringing in similar measures to the ones in the article. Simple ones first like registering through a bank and providing proper details. They are on the way at some stage.
Congratulations on an excellent win. Best of luck in the rest of the tournament :)
Thanks. Appreciate that. Unfortunatly it only lasted one more round for me but what can you do.
Posted using Partiko Android
There was a hack on BitHumb and some drama as a result including deposits closed. BitHumb prices are not to be trusted right now. BitHumb is what is causing the prices on CMC and coincap.io to be out of whack.
Interesting. There seems to be a huge difference. It's almost twice the price today with 75 pc of the trading volume.
Posted using Partiko Android
75% volume could easily be (is probably) a lie. Wash trading in order to increase the rank and visibility of exchanges is common. Bithumb hasn't exactly had a stellar reputation recently so I wouldn't put it past them.
Recently @demotruk showed the following: https://steemit.com/steem/@demotruk/when-you-adjust-fake-volume-out-on-coinmarketcap-most-coins-lose-90-of-their-volume-steem-only-loses-55
Basically STEEM (on CMD at least) is just a little less 'fake' than most other coins :-)
That's an interesting read in its own right. I checked a few more like tron and ox which seemed to go with the highest volume. Pretty much the prices from the top 60% of volume rather than the lower amounts.
Posted using Partiko Android
I don’t know what’s up on bitthumb but they’ve always been an outlier they would always have weird spikes I remember they were the reason we saw like SBD at 15 USD
Never really went to research why that is though! Honestly unless it’s a DEX we can’t trust shit thay comes from an exchange api wash trafing and volume fraud seems to be an industry best practice and not an exception.
Posted using Partiko iOS
They do have 56% of all STEEM trading volume so they can't be too bad. From reading the comments here it's a closed system for Korea which is probably a factor. I'm sure there is a lot of fraud across all the exchanges. Without any regulations people are going to push it where they can. It's only natural.
Sorry. No idea. I know that cmc leaves out some markets because the are considered manipulative!
Posted using Partiko iOS
Could be part of it. I would have though that bithumb was a decent one as it has large volume in Korea. You could be onto something though.
Posted using Partiko Android
Many already answered the reason but what is left to say is that @coingecko is the best option to view Steem and others. They are also active members here in the ecosystem.
Posted using Partiko iOS
I like them on steemit so it is time to switch that way I think. They have been nice and active on here.
Posted using Partiko Android
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