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What Part Did BitMex Play In The Ethereum Crash?

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Ethereum crash
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A month ago, traders were confident that the value of ETH would not fall below $300. But the recent fake news that Goldman Sachs was dropping plans for a Bitcoin and Crypto desk, proved to be the catalyst the digital asset needed to fall even further to current levels of $192 at the moment of writing this. All year long, analysts had predicted that ETH would plummet in the markets due to congestion issues on its network. This led to many investors shorting the digital asset through BitMEX. But many did not expect the fall to be overnight as experienced in the last week.

BitMEX Accused of Manipulating Ethereum’s Price

Information around the crypto trader community indicates that the crypto exchange of BitMEX might have had a hand in the Ethereum crash. This was after a conversation on the exchange surfaced of a BitMEX official account (supposedly of Arthur Hayes) advising traders to keep shorting ETH. A screenshot of the conversation has been provided below:

BitMEX CEO’s conversation with users. Source, trustnodes.com

The word ‘punt’ used in the conversation above, is used in informal terms to hint at attempts to make fast profits from an investment regardless of its underlying fundamentals. This means the trader carries a high risk in the trade by speculating instant high returns. In the case of ETH, the decline was inevitable, but the shorts on BitMEX might have contributed to the digital asset falling further.

With respect to BitMEX being accused of manipulating the value of ETH, the platform has barred trading for residents of the U.S, Québec (Canada), Cuba, just to name a few. This then can be interpreted as the exchange evading the corresponding regulatory authorities such as the American SEC. This theory further pushes suspicions that their back-end operations are not as they seem. There could be more to this than meets the eye with BitMEX. Here is the chart of Ethereum ever since it was added to BitMex on August 2nd at around $400.

Chart courtesy of tradingview.com

The Decline of ETH Might Not Be Over

Many crypto analysts believe that the cryptocurrency bear market will not be over till late October this year. Other’s have postulated that we have a long 6 to 12 months of either a bear market or pure sideways movement. Both schools of thought agree that in the short term, Ethereum’s price in the market might drop as low as $155. This is without factoring in any other FUD or fake news in the crypto space.

When we add the prospects of bad news from the SEC postponing or rejecting the CBOE sponsored Bitcoin ETF, we can clearly see that ETH could be headed to a double-digit value very soon. The last time Ethereum was valued at under $100 was back in May 2017 when many of us had not even got into the crypto trading space. All we knew was that there was this new revolutionary technology called blockchain and its biggest advocate was Bitcoin.

In conclusion, the cryptocurrency exchange of BitMEX could have had a hand in further pushing the value of ETH lower than was expected. This is due to the various investment instruments on the platform that allows traders to bet against their favorite digital asset. Further looking at the situation from the point of view of the exchange’s CEO, Arthur Hayes, ETH was ripe for the picking as the preferred coin to short in the markets. With the market still a bit shaky, ETH might decline a bit further.

Check out the new Global Coin Report YouTube channel as we address all the highlights in crypto and the financial markets. With guests from all over the cryptosphere bringing you news, editorial, and of course, money making opportunities.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Stablecoins Rivalry: Which New Coin will Replace Tether (USDT)?

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After the recent Tether (USDT) incident, a lot of investors started paying more attention to stablecoins. However, they were quite popular long before USDT started losing its value, and a lot of new ones were in development for a while now. These days, the stablecoin invasion is in its full swing, with around 57 coins being around — either already in circulation, or about to enter.

While most crypto investors already know this, we should explain that stablecoins are cryptocurrencies that are backed by another asset. This other asset is often a fiat currency, such as the USD. This is done so that their price would always be the same. with each coin being backed by the same amount, which is usually $1. That way, the coin is able to escape volatility, and ensure stability, hence the name.

While there were numerous stablecoins in circulation already, the one that made them known and popular was Tether (USDT). This is a coin issued by the Tether company, which claims that it can back each coin in circulation with 1 USD. However, since the company failed to provide proof that it actually has enough money to do so, the coin lost its credibility, and investors started dumping it.

This has left an empty spot in the space, and numerous stablecoins rushed in to fill the gap left by Tether. Today, we will review some of these coins.

1. Tiberius Coin…

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Altcoins

5 Reasons Why BAT is A Good Investment

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In their search for the next great investment opportunity, people often tend to run into Basic Attention Token (BAT). A lot of investors have developed a significant interest in the coin, and are wondering if things are truly as good as they seem.

With so many scams and fake coins out there, as well as bad investments that seem good at first, it is a good idea to be skeptical. However, in the case of BAT, many agree that the coin is an excellent investment that should not be missed or overlooked. So, today, we will discuss why this is, and why you should add BAT to your investment portfolio.

1. The project’s goal

BAT has a goal to solve a problem that all of us are already very familiar with, and that is the issue of online ads. For a lot of people, ads are annoying, often irrelevant, and they tend to pop up in all the wrong moments. No to mention that they are intrusive, advertisers steal or buy your private data in order to process it and target you with more appropriate ads, and more.

Most people choose to deal with this by installing ad block extensions. However, what if there is a better way to go around it?

This is where BAT comes in. The project uses its technology to solve this problem by blocking ads unless users decide to interact with them by…

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How and when Electroneum (ETN) mass adoption will catch fire

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Before we talk about how Electroneum is thriving towards mass adoption, let’s take on some basics. What is the meaning of “mass adoption” and what cryptocurrencies could really achieve it? The answer to these two questions will ultimately determine the destiny of the cryptoverse.

Sooner or later some tokens will become useful (and used by) a lot of people in the real world. That will create demand for those tokens and that demand will bring its value up. It will be the point at which the crypto market becomes mature, one that answers to real economic forces (such as supply and demand) instead of being a toy for speculators as it still is today.

So let’s start at the beginning. Mass adoption means that, given any kind of technology, product or commodity, at least seven out of ten people know what it and what they can do with it. This definition doesn’t take into account if they actually use it, only if they know about it. Think about Facebook, for instance. Not everybody you know has an active account there.

But chances are almost everybody you know understands what it is and that they could start using it anytime they wanted (if they’re not using it already) at a rate higher than 70%. Maybe a more explicit example is coffee. The percentage of coffee drinkers in the US is about 83% which is enough to ensure it’s mass-adopted. And everybody…

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