Connect with us

#Exchange

Yobit Pump and Dump Scheme: Everything you need to know

Published

on

Yobit buys various random coins for a certain amount of Bitcoin and immediately after pumping up to a certain price, the process of dumping is initiated.

Grasping the entire Yobit pump and dump scheme.

 

Secret market manipulators

The Bitcoin domain which is originally initiated with clean intentions in mind, was also, not spared by the hackers and scammers on this world. This is self-evident from various hacks and scams that have been witnessed in the Crypto space. Therefore, all the investors and cryptocurrency users are cautioned to carefully understand and practice safety measures. Failing to do so, might lead to unwanted conditions. There are also various secret Bitcoin holders known as Bitcoin Whales, which manipulate the bitcoin market by either buying or selling a large amount of Bitcoin.

 

Yobit Exchange

Yobit is one of the most popular cryptocurrency exchanges, which, in recent days, has been struggling for its market sustainment and is trying to incorporate various measures to tackle the same. While other cryptocurrency exchanges attract customers through various incentives like reward programs, lower transaction fees or increased security measures but yobit has taken the marketing gimmicks to a next level. Yobit openly announced about its pump and dump scheme that it undertakes, in order to boost the trading activities in the cryptocurrency markets.

 

The recent Yobit pump and dump

During the pump, Yobit buys various random coins for a certain amount of Bitcoin and immediately after pumping up to a certain price, the process of dumping is initiated creating artificial waves of the price. Some investors and traders use make use of the market volatility during this time period. This method of generating artificial traffic is regarded as illegal in most countries across the world. Yet Yobit pump and dump scheme seems to be working out very well. Yobit had also pre-announced one of its pump and dump activity which was undertaken on 11th October 2018.  

 

Other activities of Yobit

Yobit has also been under controversies for many other reasons. Back in 2016, Yobit trading platform had pre-released the Waves/BTC trading pair, without the actual release of coins. The Crypto exchange has a very good record for its manipulative activities. The US Commodity Futures And Trading Commission along with US Department of Justice has charged legal implications on the exchange for such activities.

In 2017, even the Russian government banned the operations of Yobit, for possible frauds and data manipulation undertaken within its name.  

 

The reaction of followers on Twitter

The Yobit pump and dump schemes are openly announced on Twitter, where various users have expressed their distaste with respect to Yobit, for such shady activities. Some of them, in fact, have approached Coinmarketcap to delist the because of its intolerable activities. While some of the users are furious with the action, some of them consider it to be as a joke. There are also users which assume that at least, they are being transparent about their bad intentions. It is now the decision of the various regulators to classify them under suitable category and take necessary actions. Failing to do so, might lead to immense losses to the users of Yobit.

 

Further insights into Yobit pump and dump scheme

The crucial matter of concern is that Yobit never announces the name of the coin which is to be considered for its Yobit pump and dump scheme. By chance, if the investors get to know the coin which is to fluctuate, then they might have a good return, accordingly. On October 10th, 2018, the exchange revealed that they will be buying various Altcoins worth 10 Bitcoin in every 5 to 10 minutes.

 

A sincere advice to distance yourself from such activities

Investments in the cryptocurrency market are very risky as some of the cryptocurrency exchanges themselves are not reliable enough to be considered. Therefore, one must hold the entire responsibility for their investments and think twice before choosing a cryptocurrency exchange for trading and investing in any digital asset or cryptocurrency.

#Exchange

The Death of Cryptopia: How it all Happened?

Published

on

Cryptopia has now gone into liquidation and suspended trading operations with them saying that they have been unable to reduce costs and to be profitable.

After the Cryptopia exchange was hit by a big hack back in mid-January which resulted in a loss of around $16 million in Ethereum and other ERC20 tokens, it has been struggling to reopen and find any kind of relevance.

 

Cryptopia decides to liquidate:

The matter of hack was made worse by the fact that the exchange was already becoming completely irrelevant at the time of the hack. Cryptopia has now gone into liquidation and suspended trading operations with the company saying that they have been unable to reduce costs and to be profitable.

 

It was decided that liquidation was the best path forward for all the stakeholders. While the liquidation takes place, all trading and withdrawals have been suspended and the process may take months to resolve.

 

The users still have their funds locked up in the exchange and they are unable to withdraw them because Cryptopia controls the private keys. If ever it becomes possible for the users to withdraw their cryptocurrencies remains to be seen.

 

What kind of obligations will the exchange have to the stakeholders may impact the kind of obligations they have to their users and the funds of the users that are stuck on the exchange.

Continue Reading

#Exchange

Will Bitfinex and Tether Fail? The IEO Chaos, LEO Token and Affect on BTC

Published

on

Bitfinex IEO is happening just a few days after the New York attorney general announced that they were taking action against iFinex.

The upcoming Bitfinex IEO is something that is being discussed all around the cryptocurrency space. It is quite surprising that the Bitfinex IEO is happening just a few days after the New York attorney general announced that they were taking action against iFinex, who owns both Tether and Bitfinex.

 

Tether and Bitfinex: The Same Entity

Tether and Bitfinex are largely the same entity. It is worth remembering of course that they lied and said that they were not connected before we had the whistleblower leak called the Panama Papers, which actually revealed their lie and that the audits have never been delivered despite being promised. In an industry in which we are striving so hard for transparency, Tether and Bitfinex have done everything possible to be opaque at every opportunity that they can get.

 

The Issue of $850:

It seems that Bitfinex has misplaced $850 million in corporate and customer fund which has resulted in some rather fancy accounting work which essentially saw an equal amount of Tether underlying dollars used by Bitfinex to cover that loss of $850 million with Bitfinex putting up shares in the company as collateral resulting in Tether only being 74% backed. Bitfinex of course casually forgot to mention all of this to investors or the holders of Tether that Bitfinex had $850 million seized.

 

The 2016 Bitfinex Hack:

Back in 2016, Bitfinex got hacked for 120,000 bitcoin which at that time was worth about $72 million and the losses were spread to users who experienced a generalized loss of 36%. They enforced a bail-in on exchange users and took 36% of account holders funds and the users were given a Bitfinex token in place of their stolen funds. The BFX token was redeemable for shares in Bitfinex. However, the cryptocurrency market was quite different and small at that time with the total market cap of $12 billion (at the time of hack). So, Bitfinex being hit $72 million or 120,000 bitcoins was pretty big because Bitfinex was the king of cryptocurrency exchanges back then, which now stands at #49.

 

The Bitfinex IEO:

Bitfinex is looking to raise $1 billion from big money investors. Each token that they are putting up is going to be worth $1 purchasable with Tether. The token will be called LEO and will be a utility token. According to documents LEO token holders will enjoy reduced crypto to crypto trading fees on Bitfinex and the companies decentralized exchange EOSfinex. Moreover, the token will also reportedly grant decreased lending fee, reduction withdrawal, and deposit fee, discounts and derivatives fees reductions.

Bitfinex has announced that $600 million is already taken in terms of allocation by private investors and the rest $400 million will be available for retail investors on May 10th.

 

If Bitfinex and Tether fail, How will it affect the price of Bitcoin?

If somehow BItfinex and Tether crumble due to the New York attorney general taking action against the company, bitcoin price might be affected at all with only Bitfinex crumbling especially at the current stage in the cryptocurrency game where Bitfinex stands at the 49th position in the top crypto exchanges list. However, if Tether fails, that could be potentially disastrous of a Mt.Gox level proportion if it happens overnight.

Competitors, of course, are scrambling to get bigger and bigger by the day trying to get people over to their services and people are already moving into those alternatives. Every time that happens, the impact of a Tether collapse becomes less and less relevant. However, there is a massive exposure to Tether across the markets with most major cryptocurrency exchanges having massive volumes in Tether pairs and much lower volumes in other stablecoin pairs.

 

What are your thoughts on the upcoming Bitfinex IEO? Let us know in the comments section below.

Continue Reading

#Exchange

5th Largest Korean Cryptocurrency Exchange: Coinnest Shuts Down

Published

on

Coinnest which is one of the largest cryptocurrency exchanges in Korea made an announcement that it is going to shut down its operations in the midst of some financial, admin and legal problems.

 

Coinnest Shuts Down:

According to a recent publication by Coinnest, bitcoin exchange, the exchanges is shutting down its operations. Coinnest had earlier closed down its new account creation services on 16th April 2019.

 

According to the exchange, it is going to terminate the trading and deposit features at the end of this month. However, the users shall be able to withdraw their cryptocurrencies from the exchange until 30th June 2019.

 

coinnest-screenshot

website screenshot

 

Following the decision to shut down its operations, the exchange has made an announcement regarding the decrease of the minimum withdrawal amount as well the withdrawal fees. Coinnest warned the users that no user shall be able to withdraw their funds after 30th June 2019.

 

Last year, the CEO of the exchange, Kim Ik-hwan was arrested by the South Korean police for fraud and theft. Since then, the exchange had been facing a bad time. The CEO was found guilty by the court and was sentenced to prison along with a fine of $2.5 million.

Continue Reading

Keep up with Bitcoin & Blockchain Technology Trends

Simply enter your email address in the box below and sign up for emails from Coinnounce regarding trending cryptocurrency, bitcoin & blockchain topics and offers.

This information will never be shared with third parties.