Pump and dump? Bytecoin's wild ride

11 May, 2018
by Conor Maloney
News
Pump and dump? Bytecoin's wild ride

Bytecoin has had quite an interesting time in the last few days after a Binance listing saw the price skyrocket to over ten times the initial value. 

Bytecoin went from trading at 200 to 2000 satoshis on Binance, while remaining relatively stagnant on other excanges around the 200 sat mark, offering a spectacular opportunity for traders in the right place at the right time.

The anonymous currency launched in 2012, early enough to be a contender with Monero. Ultimately it was revealed on Reddit by Monero's Richard Spagni that 82% of BCN was already premined, making it extremely vulnerable to manipulation by the developers and unpopular with the commuunity.

Due to this, Bytecoin has only 5 trading pairs across Poloniex and HitBTC among other smaller exchanges, making it difficult for traders to capitalize on the massive price difference between Binance and other exchanges recently. 

Shortly after the Binance listing, there were deposit and withdrawal delays on the site, and mere hours later both HtBTC and Poloniex halted BCN trading completely citing network issues, creating a miniature bubble where the curency could only be traded on Binance. The team stated that a bug due to outdated mining software casued the issue.

The fact that the currency is premined coupled with the supsicious timing of the bug has led many upset traders to accuse the team and the exchanges of participating in an orchestrated scam to capitalize on their losses.

Read more about: Bytecoin (BCN)

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