Since the beginning of the article I’d like to mention that the facts that I will present don’t have any valid proof behind it and it’s just my speculation regarding what just happened with the BCN price.
As you may know, today Binance announced that they listed BCN. As UseTheBitcon reported, the price skyrocketed to 114% on all exchanges. What’s more interesting is that the price on Binance is actually 10x bigger than the one reported by CoinMarketCap. How? Let’s get started.
The story of how BCN grow 32 times in less than one day
First, a small part of the community knew about the BCN Binance listing. And it wasn’t hard to figure out at all; Crypto_Ed_NL actually pointed this out on May the 3rd.
Five days is a long time, enough time to create a coordinated pump and dump on a massive level. I’m not blaming Crypto_Ed_NL here, if you’re following him you probably know that he’s a respected crypto OG with a lot of experience behind. As this reddit user pointed out, BCN was trading around 72 satoshi on HitBTC and Poloniex earlier today, before the Binance listing news. Then, Binance announced that they officially listed BCN and the things started to get out of hand. The listing price started at about 280 satoshi which later grew to 2300 satoshi. At this price, BCN would have been a top 5 cryptocurrency. An insane thing to image for a cryptocurrency like BCN.
Now, how is it possible to grow so much in such a short period of time? Well, the BCN team didn’t announce the community beforehand that they were going to be listed on a major exchange, they only uploaded just this post and bragging with an increase in price. Isn’t this a little shady? What important news could pump the price of BCN 50%?
Understanding the Pump and Dump
Firstly, let’s check what Satekroketje noticed.
I’ve been following it closely and found that withdrawals from HitBTC and Poloniex were not working nor was the BCN webwallet. When checking their blockchain explorer we find that no new blocks have been mined for the past 2 hours. The trading on BCN started at 06:02 UTC and since that time only 46 blocks have been mined, containing a total of 997 transactions. The number of transactions that went through seems very small for a coin that just went up over 32x in a few hours.
I haven’t checked this yet, but it might be true. The number of transactions is extremely low and probably only a few saw the announcement in time, including the people responsable of the P&D. If only a few people managed to deposit until the network started to have problems, that means the volume on Binance was and it is pretty low, enough to be manipulated up and down. Moreover, maybe the network was manipulated in a way to pass only a few transactions, blocking the other ones afterwards.
Now there are a few rumors circulating of whom it could be implied.
- The BCN team – in some groups people are speaking about how the BCN team actually knew about this and profit to sell a large part of their holdings, but not before increasing the price to a 30x+. There are also some theories that the whole network problem came from them so they could sell their holdings first to the best price possible. But again, these are rumors and nothing was confirmed until now.
- A Pump&Dump group – this is a second guess, where people claim that the BCN team had nothing to do with this and actually a P&D group managed everything for a serious profit. The network problem was also caused by them.
- Poloniex – As you may notice, the price on Poloniex had a growth to a maximum of 200 satoshi. HitBTC also had this for a while, then it exploded there too. Now, why would the price be lower on Poloniex? Because they had a large volume of BCN that they wanted to ‘escape of’. So, they started selling it to Binance and blocking the withdrawals for a large profit. They would sell all of their tokens and then probably buy more from the users for a profit. Now, everything is just a rumor and nothing is confirmed. This is just a rumor from a few cryptocurrency groups, that Poloniex was implied in this somehow.
My personal opinion regarding the implication of Poloniex and the Binance listing
I don’t personally think Poloniex had something to do with this, as their exchange is a respectable one and they were fair with the users in the past. Probably this is the hand of a P&D group or even the BCN team. One that knew that Binance will list BCN and had enough funds to move the price this high. But I didn’t make this post to blame Poloniex or Pump and dump groups . Besides this, a short time after this, Poloniex disabled withdrawals,a fair thing to do in this situation.
This things happened in crypto. So it’s important that established exchanges like Binance should add only quality projects with teams that deserve recognition for their hard work. As the number one exchange, Binance should check the cryptocurrencies more properly before adding them and keep the suspicious ones out of their exchange.
The community made Binance what it is and Binance should understand that. We’ve started using Binance because the cryptocurrencies listed there had a certain level of quality and volume. If this won’t change in the future, I highly doubt that Binance will be the #1 exchange anymore. As a part-time cryptocurrency trader, I understand that there are risks in trading cryptocurrencies. But a typical user who just joined Binance could put a large amount of personal funds into a cryptocurrency like BCN when its already up with 600%, thinking it could go higher. What would he feel about Binance and cryptocurrency in general when he’ll understand that it was all a massive Pump and Dump?
Please create a safe enviroment for trading. For us, the clients that use your service. A cryptocurrency with a shady past like BCN shouldn’t be listed on Binance, my two cents.
This is a guest post made by a BCN enthuasiasts regarding the current situation. The author preferred to keep his identity private. UseTheBitcoin.com and its staff are not responsable for any of his opinions.