This may not be a popular topic. Why have an issue with something that pumps our bags, right?
And to be fair, most if not all pump-and-dump schemes that focused on HIVE left it at a higher price level after the whole thing was over than where it started.
The most recent one which started during the night (my time) took HIVE from a little over 50 cents to almost 1 USD. And it might not be over yet.
So far the daily volume took off to 708m USD on Coingecko, whereas on a normal day it's around 9-10m USD. Almost 82% of that volume comes from Upbit.
But what are pump-and-dump schemes? They are price manipulations of assets (which generally have a low volume/liquidity) for profit.
That works out well when everybody is happy. But what happens if that's no longer the case?
Price manipulation is price manipulation. Under the right conditions, it can go either way. What if the manipulators find it more profitable to simply drive the price to the ground? We all feared JS would attempt that after the split. Luckily it didn't happen (but 10-11 cents HIVE was pretty wild), and we are now far ahead from that point and much stronger.
Yes, I know, it would be practically impossible to dump HIVE too low, the buying pressure would soon suck up any liquid HIVE on the market, but it wouldn't be fun if HIVE went -50% out of the blue instead of +50% intra-day. Most people in here would probably freak out.
However, the most recent two pumps may have fundamental reasons behind them as well.
Hard fork 26 will bring with it some highly anticipated upgrades and new tools which will bring Hive to the next level. And often market price positively anticipates important hard forks. Just look at the price action for Ethereum lately, which pumped hard a couple of times, with an ever-coming upgrade.
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This could actually continue going into the future. What is surprising is that $HIVE could actually be manipulated more in the future if Resource Credit delegation takes off along with the number of users.
This is going to really tighten the supply on the market if a lot of people start powering up the Hive out of necessity.
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That's a good point. Maybe a HIVE-HBD LP at the base layer could help if it incentivizes people to keep native HIVE and HBD liquid as well?
I actually think that is where the use of derivatives enter the picture. Think of pHBD and pHIVE. Both offer liquidity but have the native coins locked up.
This is where arbitrage can happen and the market expanded.
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I agree, they play a role, and I use them. But there are enough big holders who don't move their coins from the base layer.
That is true. But the base layer, with HBD, create more coins. So there is an advantage to having it locked up. We also could see Hive bonds which will radically alter the structure of things.
We need massive expansion with derivatives and other forms of Hive/HBD. It is tough to maintain liquidity and value at the same time. Ultimately, for value to be there (not price), a reason for holding has to be there. Yet that is counter to what is required for liquidity.
I will do an article about this in the morning to thoroughly explain it.
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You are probably right about derivatives. Outside crypto, their market is much higher than that for the base assets and often derivatives dictate the price for the base assets as well.
That is true and the reason is derivatives are used as a hedge in the monetary system. With everything being based upon risk assessment, when one loads up on one asset, it is required to temper the risk. This is where the hedging enters.
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I keep reading this Upbit. So is Upbit a Korean crypto exchange?
That is a huge jump in volume. In the stock market, it is considered good if the increase in price is accompanied by an increase in volume. It's like as you said, some people out there are anticipating some positive developments in days to come.
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Yes, it's Korean (you need to KYC with Korean documents to be able to deposit or withdraw). The problem is it's believed they are faking their volume through wash trading, to make their price the most relevant for crypto price aggregators.
Curious about what's wash trading. I'll check it. If it's real volume, that's good. But if they are faking it, what's the motive behind it? Only easy gain?
Task comes to your aid with the definition of wash trading.
Interesting definition. It seems legit to me. 😄
In Upbit's case, I can't confirm since I don't have an account there, but I heard during these moves fees and slippage are either zero or very low and whoever does the wash trading simply exchanges from KRW to HIVE and back until the volume goes to the roof.
That kind of wash trading is different from the meaning given in the link. That kind of practice in Upbit looks pointless. Why trade KRW to HIVE back and forth in the same exchange? 😄
I don't really care about them too much and it allows people who want to take a profit to do so. It's just too bad that most of the trading and activity happens in a market that is closed off to most of us.
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That's the problem. Lack of access to the exchange that allegedly had the highest volume.
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Hive going 50% up or 50% down I don't care that much, what I need to do is set a goal number and keep some liquid Hive and HBD for when the pumps happen.
Voted on ListNerds!
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Well,, you've spoken like a true holder! 😄
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Markets are going to do what markets do.
If someone can make money, then they're going to drive price in that direction.
This is the game we play and nothing we can do about it.
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It's not reassuring to know a group of people with money on a closed exchange has so much power on the direction the price of HIVE takes.
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The best scenario would be that more Hive is available on other exchanges.
More, more active, and friendlier exchanges. Or better yet, the decentralized solutions.
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it looks like its fading already. has been a good pay day if it goes back to 0,50$
Actually, I want it to go to 50 cents, plenty of HIVE I still need to buy for my goal.
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I'm waiting there too. Got some stable coin on standby!! Preferably 40 cents
Hmm, maybe after the hard fork. The trend is upwards now.
Yeah, lets see. Anywhere in 40-50 cents area is a good buy
I would not enjoy seeing the price driven out of control either way. Although my habit of dollar cost averaging will help me to not freak out. Somewhat. When is that next HF supposed to happen?
!CTP
!ALIVE
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At this point, who knows? I believe it'll be before HiveFest 2022, which is mid-September.
Oh, okay! I am sure they will give us some kind of heads up! Right?! Thanks, @gadrian and enjoy your weekend! 😀
Blocktrades said something in his post, but until we have the announcement from the hiveio account, we won't know for sure what the date will be. Seems late August or early September are likely.
Thank you again, @gadrian! Enjoy your Sunday! 😀
!CTP
!ALIVE
@gadrian! You Are Alive so I just staked 0.1 $ALIVE to your account on behalf of @lisamgentile1961. (1/10)
The tip has been paid for by the We Are Alive Tribe through the earnings on @alive.chat, feel free to swing by our daily chat any time you want.
Good Morning and Thank you, @youarealive! Enjoy your day.😀
@gadrian! You Are Alive so I just staked 0.1 $ALIVE to your account on behalf of @lisamgentile1961. (1/10)
The tip has been paid for by the We Are Alive Tribe through the earnings on @alive.chat, feel free to swing by our daily chat any time you want.
Good Morning and Thank you, @youarealive! Enjoy your day.😀
This is quite interesting, Adrian.
I have taken advantage of the quick hike by selling some Hive with the speculation that it will come down a bit again.
We shall see how this pans out.
!CTP
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Awesome! Looks like you did a great job. I wish I had some liquid HIVE yesterday.
stop being a party pooper :P
Yes, sir!
I've no problem with them for the simple fact that it gets more hive into the hands of long term holders.
Everytime that the price pumps like this myself and a lot of others sell our liquid hive for a high price, wait a few days and buy back more to the account afterwards.
I think that this will help hive in the long run as you can see the support level raising slightly everytime.
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I remarked that as well. But what happens if instead of this scenario, the price just crashes? Manipulation can move prices both ways.
It could be dragged down but that wouldn't be easy with the current state of affairs.
There is a lot of money and positivity around hive right now and if somebody tried to drag it down towards 10c the would meet a lot of resistance and lose a lot of money.
At 10c I would be selling everything else that i have to stock up.
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I agree with you on this one. Right now it's far more effective to just make money and don't fight the positive trend.
Then people like me would step in and start buying like crazy.
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I guess it's good to look at it from both sides. Most of us are happy with the pumps because it gives some arbitrage opportunities which can translate into profit. But if a dump happens, many will get depressed.
Let's look at the bright side, maybe the Koreans have a sixth sense and can see the potential of Hive and where it's heading that's why they keep manipulating the price on the positive side lol. It's becoming frequent lately.
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Well, so far they kept it on the win-win side, I'll give them that.
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