Why I Excluded The Coinmarketcap Price For SBD From The Daily Market Snapshots
If you look carefully at the coinmarketcap statistics for SBD, pictured in the screenshot above, you will notice a few strange things:
- on HitBTC, the SBD price is almost $12
- the volume on HitBTC is a little over $22,000
- the volume on HitBTC accounts for roughly 2% of the entire trading volume of SBD
Now, if you want to deposit or withdraw STEEM / SBD from HitBTC, you can't, because there is a "technical maintenance" going on.
So, under these circumstances, I consider the influence of the HitBTC price on the overall price to be negligible, and the fact that Coinmarketcap is still displaying it, very close to a bug. It's not technically a bug, but, given the fact that HitBTC has its wallet closed, it invalidates any arbitrage attempt, leaving the price prey to manipulation. Which is very easy to do, on just a $20,000 volume.
Normally, I think HitBTC should also stop trading if they have their wallet under maintenance, but that's another story. A story which reminds me of the early days of Poloniex, when they were suspending their wallets for weeks whenever there was a price bump, hence manipulating the price big time.
I decided it's better to use another price for my daily market snapshots, from Bittrex, which has the wallet open at the moment. I would advise anyone who is "happy" about the price increase of SBD to read this article carefully and not fall prey to market manipulations.
Steem on!
I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.
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Thanks @dragosroua for sharing these insights on SBD price rise...
Sounds like a good move @dragosroua.
I noticed the rate for SBD to Steem had gone to 1.1 last night in Steem Supply so I rushed over to the internal market to trade and saw that the price there was still about 0.7.
I was all happy there for a moment! 😁
I think liquidity and trade volumes are an often overlooked aspect of cryptocurrency pricing. It's why you can theoretically make a 100%, 200% or even 500% profit off arbitrage trading some tiny alt-coins across obscure platforms. Wherein reality you might buy the coin and it'll simply never sell.
Yeah it's a risky game to say the least to send all your coins to any exchange that is willing to look the other way or potentially actively participate in market manipulation lol.
The price there will drop very fast
Hit BTC should make the necessary correction so users don't do the wrong this . Your post is helpful .
I am waiting for your next new update news .
Your post is always different i follow your blog everytime , your post is so helpful . I always inspire of your post on my steem work . Thank you for sharing @dragosroua
Keep good work of every time ...
hitbtc is actually a joke of a exchange whenever i want to deposit something its always under maintenance lol
Great information for the confusion about the price of sbd in hitbtc and coinmarketcap....@dragosroua
Normally, I think HitBTC should also stop trading if they have their wallet under maintenance,
Well i tend to agree with you, maybe the said maintenance is no maintenance at all. Maybe its some kinda manipulation
HitBTC should make the necessary correction so users don't do the wrong things.