On Wednesday, July 18, Bitcoin Diamond (BCD), a Bitcoin fork established in November of the last year, jumped from $2.21 to $3.95 in about 10 minutes. Then it hit a new high at $4.52 several hours later as it stepped into Thursday. Thus, the cryptocurrency gained over 104% in only a few hours. The bullish move came when the BCD team announced that the coin was listed on cryptocurrency exchange HitBTC, with the trading pairs BCD/BTC, and BCD/USDT being already available for trading.
https://twitter.com/BitcoinDiamond_/status/1019863997665837057
However, if we look closer, the surge started right before HitBTC added the coin, as the announcement said that the exchange had listed BCD on Thursday morning, while the price jump came on Wednesday evening. Does it mean that we saw some signs of insider trading? The worrying thing is that BCD collapsed from $4.47 to $2.25 in less than 15 minutes, and since then it has been fluctuating around that level.
The pump and dump move saw high volatility in volume as well. It’s hard to believe that the leap was accidental. On Wednesday evening, before anyone could know about the HitBTC listing, BCD re-tweeted that it was doing really great, probably indirectly calling investors to open positions:
https://twitter.com/CoinDeskMarkets/status/1019637809102098438
Someone was perhaps ready for HitBTC to add the coin. When the announcement came, the price jumped again indeed, but it soon collapsed as if nothing happened at all.
Another explanation might be that the market reacted emotionally on the news, and then analyzed it and came to the conclusion that it was less important than initially anticipated.
The problem is that a similar pump and dump move happened from July 7 to July 9. The scenario was the same – BCD jumps on July 7 without any fundamental support whatsoever, and then a pre-release wallet is announced. Later, the crypto exchange Xstar.io announced that it would list BCD soon, so we have two positive events at once. But this didn’t help at all as the price collapsed to the same level where it started.
This article appeared first on Cryptovest
