In recent days, there have been rumours online about what could happen in the cryptocurrency market. A large number of respected crypto trading profiles on Twitter suggested that there could have been a large dump coming this week. However, Vitalik Buterin, the co-founder of Ethereum (ETH), explained that most of these things that “are about to happen in crypto” are simply rumours that expand in crypto Twitter.
Vitalik Buterin Explains What’s About to Happen in Crypto
The cryptocurrency market has been trading lower in recent hours as rumours spread about a possible event that could push Bitcoin (BTC) and other digital assets lower. There is no clear information on whether this marked drop could have been caused by these rumours, but one thing is certain: many users traded these rumours.
Vitalik Buterin mocked those users that claimed to have privileged info:
“I’m hearing through the grapevine that something important is about to happen. Please recognize the fact that my elite social connections to people who are early to know things make me cool, and please help me validate my self-image of coolness.”
Buterin explained that there has been a “general pattern on CT” that he found to be insufferable over the past week.
I wasn't responding to you (I meant it when I say I don't subtweet single examples), just calling out a general pattern on CT I've found insufferable over the past week.
— vitalik.eth (@VitalikButerin) November 21, 2022
He then mentioned that there are moments on CT in which people, usually large accounts with many followers, share rumours. These rumours then spread online thanks to retweets and the community simply sharing this information, which might or might not be accurate. The problem with these tweets is that there is a large number of users that trade them, creating a situation in which many users could end up losing large amounts of money if markets don’t move in the expected direction.
Buterin went on to write that the crypto industry has been marked in the past by similar situations in which people induce price movements in a direction, helping these users to increase their crypto holdings. In general, influential crypto figures on Twitter can easily push the market in specific directions, especially illiquid coins or during weekends.
Paul Graham, one of the persons that wrote about a possible risk in the crypto industry, answered Vitalik Buterin explaining why he wrote the Tweet Vitalik Buterin was referencing.
The message written by Paul Graham was:
“A person I have known for more than ten years, who I consider trustworthy, is convinced the cryptocurrency economy will shortly experience a systemic risk. I don’t know anything concrete, but if I were exposed, I would be concerned.”
A person I have known for more than ten years, who I consider trustworthy, is convinced the cryptocurrency economy will shortly experience a systemic risk. I don’t know anything concrete, but if I were exposed, I would be concerned.
— Paul Graham (@paulg) November 20, 2022
Nevertheless, Graham mentioned in another Tweet that he does not know any details about the message that he released on Twitter. He has also mentioned that people know as much as him when it comes to the message that he shared on Twitter about systemic risks.
According to data shared by CoinGecko, Bitcoin is now being traded at close to $16,050 and it has a market capitalization of $308 billion. In the last 24 hours, Bitcoin lost 3.1% of its value.