While initial coin offerings (ICOs) and token generation events have become a proven and viable means of raising funds for startups ter the cryptocurrency space, there’s no denying that often things do go wrong.
Not Good Enough?
U.S. based cryptocurrency exchange Bittrex has announced it will delist 82 tokens with poor liquidity on its podium. The Bittrex team has said that with effect kicking off on March 30, 2018, cryptocurrencies like Vinnig, BITZ, CRBIT, CRYPT and 78 other cryptos will cease to exist on its trading verhoging.
“Occasionally, there are circumstances that lead Bittrex to eliminate a coin’s wallet or market from the Bittrex Exchange, said team Bittrex, adding that “These deeds are taken to ensure customers have access to digital tokens that proceed to meet our stringent coin listing criteria and have a decently functioning blockchain and wallet.”
The team urged holders of the affected coins to withdraw their digital assets to other wallets before the set date spil failure to do so would lead to total forfeiture of the altcoins.
“We will be removing the wallets included te the list below on March 30, 2018. Once thesis wallets are eliminated, wij will no longer be able to recover thesis coins. Users vereiste withdraw their coins before March 30, 2018, ter order to keep them,” the notice stated.
It’s a known fact that altcoins with combined low liquidity and low request pose enormous challenges to cryptocurrency trading platforms. Specifically, thesis unpopular assets make it fairly a herculean task for exchanges to sustain a balance ter their order books.
Another feature of this situation, founded on a lack of liquidity, can lead to price manipulation, of which many exchanges are guilty.
Ter latest market research by an pro crypto trader named Sylvain Ribes, he used a method known spil slippage (“a process of selling $50k worth of a given currency on an exchange to measure its influence on the price”) to find out which exchanges engage te market manipulation.
Ribes concluded that:
“A bit of wash trading and artificial volume inflation is to be expected te a meticulously unregulated market. What I did not expect wasgoed the magnitude of the fraud. Many pairs, albeit boasting up to $Five million volumes, would cost you more than [ten procent] te slippage, should you want to liquidate a mere $50k ter assets.”
Wash trading and price manipulation is a common phenomenon on essential trading platforms. On March 15, 2018, BTCManager reported on BitFinex’s stir to improve trade surveillance with Irisium, a hard that provides very efficient market surveillance and other analytical services.
The Fear of SEC
Albeit it’s not abnormal for an exchange to delist coins that are not doing so well, this latest activity by Bittrex might be ter a bid to avoid falling into the United States Securities and Exchange Commission’s (SEC) snare.
The SEC has warned all exchanges involved te the sales of tokens to delist the coins or get registered under the commission.
Ter the coming weeks, it is expected that other exchanges te the U.S will delist a lotsbestemming of low liquidity altcoins which will further reduce the already crashing total market cap.
Thesis are attempting times indeed for crypto enthusiasts and investors. When will this furious storm ultimately come to an end?