STEEM Takes A Polygraph Test
More Fun On Bithumb
Not sure if anyone here has any STEEM dealings on Bithumb, but if you've been watching the exchanges, you'll see that it has been significantly higher with its pricing than the rest of the exchanges. This has been going on for a while now.
It's similar to what has been happening on Hitbtc for SBD, except today, there's significant volume.
I'm not sure how the other indices are reacting to it, but on Word Coin Index, they seem to have removed the Bithumb exchange from some of their calculations, such as the 24-hour volume indicator, but not entirely from the price average.
Then something else started happening today that I've not seen before.
As you can see from the image, the STEEM price average is up to $1.80. A look at the graph shows the right half of it suddenly bouncing up and down about $0.40. It looks like a polygraph test to me.
Here you can see the volume being generated by Bithumb, but it's higher than what's shown in the above image. Even so, most of the prices are down at $1.40 USD except for Bithumb's $2.08. This screenshot was taken within seconds after the one above.
This one shows the average price back down to $1.40 a while later.
This is what the list looked like when the price was lower. The Bithumb price is actually higher on lower volume. The rest of the exchanges don't look radically changed in anyway.
Regardless, there's some strange things going on. Be it Bithumb, World Coin Index, or just the graph.
Then, that happened. About two and half hours later, Bithumb volume took off and so did the price, but the index average actually went down.
Admittedly, I've only been around this a little over six months, but I can't say this kind of action on the index is common. If the graph and averages are not in error, then someone or a group of someones was pumping and dumping at the fastest pace I've seen yet, and doing so with a significant amount of investment.
About This Post
All images are screenshots taken from the World Coin Index website. This post is for informational and observational purposes and should not be considered a prompt to buy, sell or do anything else with STEEM or any other investment.
You got a plankton sized upvote from @worksinsane because your post appeared in the We Curate quality post search tool. It is a web art thingy thing that searches posts which fulfill predetermined rules. Upvoting isn't automated, @worksinsane reads posts before upvoting.
For more information read the latest post: https://steemit.com/wecurate/@worksinsane/we-curate-5
That looks totally bonkers @glenalbrethsen. What is the strategy behind pumping and dumping? I don't get it. 😕
Someone more adept at such strategy would have to answer your question because the only thing I think they're doing is trying to generate a significant amount of money quickly. What I don't get is, if you do it that quickly, who else can jump in fast enough and drive up the price in addition to your own investment?
I'm not totally convinced that's what's happening, anyway. It just seems pretty glitchy on the part of the website or Bithumb.
If someone invests a million dollars at $1.40, is that enough to raise the price to $1.80 by itself. If it is, you don't need anyone else. You just take the money back out, and you've made your $.40 per STEEM profit.
Or does it take $10 million? It would seem to me you'd need to have that amount at your disposal to pump it, and do it on an exchange that doesn't seem to have the same caps as Coinbase does, and then be able to turn around and sell it without holding it for any length of time.
If someone invests a million dollars at $1.40 doesn't it mean other people have to buy in order for the price to go to $1.80 @glenalbrethsen? How could it rise by itself? I don't get that. 😕
Well, that's just it. I don't know that it is. It might be. I've never been able to figure out how that is all valued.
I was more or less wondering out loud if a million would be enough to move the STEEM price, or how much would it take. It seems to me that if the price is $1.40, and someone buys a significant amount, whatever that is, then that would change the price, because more STEEM was bought.
If it's also based on individual buyers, then what happened yesterday would need to be orchestrated by a group that were all buying and selling at the same time. Again, if it wasn't a website glitch.
I just went and checked another site and they don't seem to be showing the same weird buying and selling pattern, so maybe it was just World Coin Index.
Is that because there is a limit on the amount of Steem that will be created @glenalbrethsen?
No. As far as I know, STEEM doesn't have a limit. It probably should, but I don't think there is. Especially when the plan is to expand it to a global digital currency.
In this case, it would be based on demand and the supply at the time. At any rate, I'm getting into deep water here, because I've read that some of this can be burned, thus dropping the supply and making STEEM or SBD go up that way.
It's not a thing I completely get, not like regular supply and demand scenarios. If there is a shortage of an item and greater demand than supply, prices can go up at the grocery store, but generally, prices hold over a period of time, because supply keeps up with demand.
But in the case of the markets, buying seems to create more supply, unless there is a cap, or a limit, like in the case of Bitcoin. There's a built in scarcity there because Bitcoin mining will cease sometime in the future. STEEM isn't like that, though.
Well I must have misunderstood then @glenalbrethsen because I thought there was a limit on how much Steem would be created. I'm sure I've heard that said many times but I might have gotten it completely wrong. I'll have to listen more carefully in future! 😂
Is this what you're referring to? I pulled this off the STEEM blue paper. This is the token creation by inflation that funds the reward pool, compensates the witnesses and vested token holders.
I personally don't know what happens 18.5 years from now when the inflation hits zero. I think we're all hoping the reward pool will still be around along with the witnesses and vested token holders. Maybe it won't be needed by then.
Those people who are trading STEEM on the exchanges though, I don't know that all of them have Steemit accounts. I would think they would be buying and selling independently of Steemit.
I'm sorry about all the confusion. I'd be happy if someone were to clarify all of this.
howdy again @glenalbrethsen! so what does all this mean? or does it mean anything? I'm not a trader, tech or crypto guy. but i like the post and information.
I'm not any of those things either. I mainly observe and then try to make sense out of the nonsensical. :)
If it wasn't a glitch of the World Coin Index STEEM page, then someone or a group of someone's was trying to pump up the price so they could sell at a profit. Multiple times over the course of around four hours or so.
What's stranger is, this all seems to have preceded a wider market increase in prices, which Bitcoin is leading. So, the prices have been coming up on their own over the past few hours, including STEEM and SBD, without the need for whatever messing around might have been happening earlier.
All of those screenshots were taken either around 6 AM or 8:30 AM this morning. Right now the STEEM average is sitting near $1.67 on the WCI, and steemworld is reporting it at around $1.65, both of which around a $0.25 rise from this morning.
yeah someone had to be pumping and selling like you said I think, but it doesn't make too much sense. but the price rising is a good sign. only a couple more grand to go and we'll be set for life! lol
Yep. Just a couple more grand to go. And we'll be living the high life. Invisible islands. Beach front property. Marvel physics. I'm pretty sure that all happens when STEEM gets to $2,000 USD. :)
Lol. I just stick with the Bittrex price.