After the recent pump and dump calls on Bytecoin (BCN) in the last few days the coin has bounced back up in the last 48 hours to hit $0.01 USD. After hitting a $0.002 USD low in early April, BCN experienced a month of constant gains to see its price hit the $0.03 USD on Wednesday May 9, 2018, representing a 1400% increase in price in a month. The price of BCN then dipped below $0.01 in a matter of minutes.
This short lived all-time USD high raised questions on the eligibility of trades of BCN on Binance and HitBTC. Trading BCN later froze on various exchanges leading to temporary suspension of deposits and withdrawals on the exchanges. The team was quick to admit the mistake and worked on rectifying the problem quashing the ‘hack’ hypothesis before it started.
BCN monthly chart showing an unusual spike in price
After the pump and dump calls, we look at the impact the event has on the Bytecoin (BCN) as well as the whole market faces.
Issues arising from Bytecoin’s latest accounts
- Whales vs Centralization
After such a quick rise and fall in the price of BCN, many questioned the role of whales in controlling the cryptocurrency market. First of all, it is crucial to understand whether the presence of whales in cryptocurrencies make the project centralized. In my opinion, whaling has a lot to do with centralization as adoption of the blockchain technology grows.
Simply, adoption of Bytecoin technology will ensure that more BCN will need to be purchased to be used in the system and with a couple of whales holding majority of BCN, the power will heavily lie on them to power the network. This recent act shows greed amongst a few of the whales reducing the trust amongst investors.
- FOMO/FUD vs BCN overall adoption
Cryptocurrencies and blockchain technology has introduced the world to one of the most volatile asset classes in recent times. The volatility arises from the heavy speculation surrounding the crypto field and the ignorance of most investors who are heavily investing for the FOMO. While momentarily boosting the short term pricing of the coins, the overall effect tends to hinder the long term adoption process of most cryptocurrencies. FOMO travels as fast as FUD in the field with the latter having a greater impact on the coin’s price. The recent news on BCN’s pump and dump, is an example of an event that can well turn into FOMO/FUD killing off the spirited work done in the technological department.
Binance is currently the leading cryptocurrency exchange trading Bytecoin (BCN) on Coinmarketcap, accounting for $130 million worth of BCN traded on the exchange. The BCN/BTC, BCN/ETH and BCN/BNB pairs accounted 85% of the total value of BCN traded.