Outrage As YoBit Admits Coin Price Manipulation
The exchange is yet to issue a statement regarding the matter even as delisting calls intensify.
YoBit Facing Possible Delisting After Price Manipulation
The credibility of some cryptocurrencies can badly be damaged when they undergo a sudden spike in price then dramatically drops. For early investors, this can be a major concern. However, some exchanges are known to promote such an occurrence. YoBit exchange is one of them, after admitting through a tweet.
The exchange tweeted that it was purchasing random cryptos for one bitcoin at a span of one to two minutes. The transaction was to happen ten times. In other words, the exchange was saying that it pumped a selected crypto in 22 hours.
An analysis of the tweet shows that the exchange selected the PutinCoin for pumping. The coin appears to lack merit despite being a clone of bitcoin but carries the name of Vladimir Putin, the Russian President.
According to the coin whitepaper, the PutinCoin was established to honour Russians and their leader. The document further states that the coin was created in order to spur economic growth with and outside Russia.
Following the tweet, users elicited different reactions, with some terming the move as a shame. The move comes just days after the CFTC issued warnings against pump and dump plots. The authority stated that in case such an incident is discovered, investigations will be launched immediately. One user even went ahead to remind YoBit about the directive.
A number of media outlets have attempted to contact YoBit but no response has been given. A look at the market cap for PutinCoin, it is ranked at position 1,115. The choice of PutinCoin was a random one since it has nothing compelling.
Following the announcement, the value of PutinCoin rose to 1,768 satoshis after previously recording a low of 118. By publishing time, the coin was standing at 301, which is approximately three more times than the ordinary value. The first pump which lasted for 40 minutes, managed to raise 129 bitcoins in trading volumes.
Following the pump, users have been calling on CoinMarketCap to drop the exchange. However, CoinMarketCap has not issued any response regarding the calls. A response came from Coinigy which announced that there is a possibility that YoBit will be delisted.
In a statement, Coinigy stated that YoBit alongside HiBTC had received negative comments on various social platforms. Before moving ahead with the delisting, Coinigy is reviewing more feedback from users before making a final decision.