BSV's Dump is Going to be as Staggering As The Pump
Bitcoin Satoshi Vision (BSV), the infamous altcoin which forked from the Bitcoin Cash (BCH) network and is headed by controversial self-proclaimed Bitcoin creator Craig Wright has been making headlines for its unbelievable pump in the past week. BSV managed to rise more than 100% on 14th January and almost doubled its market cap flippening BCH to take the fourth spot on the CoinMarketCap ranking for a brief period.
Bitcoin and most of the altcoins are currently experiencing a bullish price momentum and have also made double-digit gains on 14th; however, BSV token's unprecedented rise was beyond comprehension for many. The infamous altcoin which barely managed to keep itself in the top 10 rose to the 4th position and currently trading at $314.43 to take the 5th spot.
The Wright-Kleiman Lawsuit Aiding BSV Pump?The BSV proponent seized the opportunity to claim that the recent BSV price rise was fueled by the ongoing Wright vs Kleiman Estate case. The lawsuit was filed against Wright in 2018, and the court proceedings have found Wright lying under oath, fabricating statements and making dubious claims. The judge asked Wright to hand over half of the 1.1 million BTC he claimed to have under a third-party Tulip trust.
Wright, in a court filing, claimed that he has managed to get his hands on 16,000 odd accounts holding the $9 billion worth of Bitcoin. He also asked for an extension until February to hand over the private keys which a 'bounded courier' will be bringing by January end. BSV proponents claimed the 16,000 account details is a clear sign that Wright is the real Satoshi; however, they forgot that Wright even in the past, has made similar claims and is falsifying evidence.
The Classic Pump and Dump on the Cards for BSV?Bitcoin SV has been among the worst-performing altcoins ever since its inception after forking from BCH network in November 2019. The altcoin was also delisted from some of the major exchanges including Binance falling Wright's lawsuit against a Bitcoin proponent over a Twitter argument. The altcoin has not seen any significant development since its creation, and last year, a report suggested that over 90% of its trading volume was coming from a Weather app.
So, was it a classic case of Pump and dump? Well, many in the crypto-verse are quite confident about the possibility. Twitter user Nicholas Merten who also run crypto centred Youtube channel tweeted that only 1% of BSV volume was coming from US traders. At the same time, the rest 99% volume is being generated from shady and unnamed exchanges. He wrote,
While another user pointed out how BSV's 24-hour trading volume was more significant than its overall market cap, which is not just weird but an alarming sign for the BSV holders.
Ignore the price moves of $BSV. Only $35.6M of volume is from exchanges open to US traders. The other 99.4% of daily volume is made up of mainly no-name exchanges and known wash trading exchanges that still deceive this space. They can basically dictate a false price.— Nicholas Merten (@Nicholas_Merten) January 14, 2020
The fact that most of the trading volume in the ongoing pump has come from non-US traders and exchanges which are hardly heard of must be a warning that the dump will be as high as the pump.
Isn't it weird that the market cap of #BitcoinSV is LOWER than its 24HR trading volumes. This is a recipe for disaster IMO. Absurd! #BTC #Bitcoin #BSV. Treading on this ice now! pic.twitter.com/CHl3DEpfdV— Dalmas Ngetich (@Dalmas_Ngetich) January 15, 2020
A Pump of Over 100% in a Day is a Sign of ScamCryptocurrency space has come a long way from its early days of high volatility, bubble-like behaviour and media news governing the price movement. Thus, the steep price rise of BSV should not be a thing of rejoicing even for a BSV proponent as it is a clear indication that the altcoin still posses high volatility and its price can be easily manipulated and pumped via wash trading and numerous other methods.
A massive price rally is often followed by an equivalent strong wave of market corrections. Thus the correction in BSV's price will be as steep as the rise. The fact that Wright has been this close to proving that he is real Satoshi on numerous counts in the past and has failed on each of those occasions. It should not come as a big surprise for many when he fails again to establish his identity as Satoshi.
Thus, it is only a matter of time before BSV dump begins, which will be as staggering as the rise and the BSV investors would realize their mistake once again.
About The Author
Prashant JhaAn engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.