How to manufacture a STEEM price pump..here is how
So , I have seen drastic difference in STEEM price on coingecko and coinmarketcap , coingecko lists steemprice at almost 2x the price on coinmarketcap.
Coingecko:
coinmarket:
I had never understood the price difference until yesterday when I decided to dig a little deeper. As you will see in the image below most of the traffic (volume wise) is coming from one exchange ( Bithumb) and the volume is almost 85% of the total STEEM trades and the price is also quite inflated (4.57%).
Now , you do see 2 ** sign next to it on the coinmarketcap site and what does the footnote say about those signs ?
So basically coinmarketcap does not include the 4.57$ price at 85% volume for reasons listed above , so dug a bit deeper as to why do they claim they do that?
So , alteast in theory , you could move STEEM from your own one pocket to another on Bithumb and it would appear to the rest of the world that prices are going up.
What do you think ? is there any other reasons Koreans are buying STEEM at such high prices?
Great observation! Its all about the trading fees. Arbitrage.
@wstanley226
This just artificially inflates the markets atleasts to noobs like me..
It still confuses me haha.
Just look at coinmarketcap from now on...
also for aussie purposes you gotta look at coinspot
https://www.coinspot.com.au/buy/steem
Sometimes people just can't get access to other exchanges and are stuck at buying at the market price.
Usually, someone takes advantage of this arbitrage opportunity if it really exists. But sometimes getting money into an exchange is easier than getting it out.
Is that the case with south Korea? ? And to such an extent that prices are 2.5x?
Also difficulty in getting money out would imply downward or upqard pressure on price ?