What’s up in the world of cryptocurrency and altcoins?
The market had the greatest shock on Ethereum this morning when some clown sold off his ETHs for a mere 10 cents causing the market to drop from 360 to 14 dollars in a very short span of time, and then shot up again in 45 seconds, but by then anyone with a stop order or margin trading got royally fucked in the ass. People lost money, and some people gained a lot of money.
What just happened?
Did someone make a mistake? Keyed in the wrong amount? 10 freaking cents? No way.
The news is all over the place but what actually happened is still hazy. I poked my head into various forums to get the chatter and piece together what I think actually happened.
This was no mistake. It’s market manipulation at its finest. If this was your normal FOREX market, the regulators will be all over this incident. But alas, this cryptocurrency universe and it’s still a wild west out there. Like I said it before, this place is not for the faint hearted or those without insiders’ info.
So here’s what’s I think happened.
It had to be done on two accounts. Someone set the Ask Price (which is the selling price to 10 cents) and once that appears on the exchange, the Bidder (that’s the buyer) clicks on it and makes a purchase before anyone else could react. The ETH value plummets to a new low, and then the person bought in at the new price of 14 dollars and makes the profit when the price goes back up to 300 dollars.
In simplified explanation:
I sell you at 10 dollar when the price is 11 dollars, price dropped to 9 dollars because of ripple effect, I buy it back at 9 dollars and I made 1 dollar losing no shares.
Cool eh? Experts estimate the person to have made 30 million from this trade.
In other news, ICO (Initial Coin Offering) are the go-to coins for small investors hoping to turn a big profit. They are higher risks but also provide better margins IF they make it to the open market. I got an insider tip off a few days back and bought into Gilgam.es ICO yesterday. That’s my recommendation if you’re willing to taste a little risk. Not many people know about this so hop on it before the price goes up. You can head over to this website in the link below. It’s a bit of a hassle to purchase it right now with the ETH blockchain traffic jam and all.