I dislike pump-and-dumps organized almost regularly via Upbit because they don't reflect well on HIVE, plus the side effects on Hive-Engine token prices are even higher to the downside when HIVE pumps.
The question is, what do we on Hive do when such a scheme is at play? Do we play along for a quick profit, do we do nothing or can we do something to stop them?
The subject has been talked about many times before. Due to the nature of Upbit, which requires KYC with local documents, as far as I heard, its users are restricted by their residence/citizenship in the allowed countries. They also have a branch in Indonesia, which broadens the potential userbase, but it's still not global.
So, not everyone on Hive can have an account on Upbit; westerners can't if that's the KYC procedure. Plus, when we are talking about a daily volume into the tens of millions of USD worth of KRW/HIVE during a pump, it's even harder to make an impact.
Since Upbit gives the majority of volume on centralized exchanges, it can dictate the price of HIVE, even if for a short period of time, enough for a quick pump.
Looks like this pump might be out of steam though. If it goes through this sort of support they formed ad-hoc around $0.56-$0.58, I expect HIVE to be back below $0.50 shortly after. Maybe the pump was badly timed, as it started when the crypto market turned more reddish in the past few days.
Personally, I do get a little bit of good of this kind of a mess, for my HIVE goal. While I wasn't inspired to buy HIVE with HBD when the pump started (or on its way), I did the reverse though, and sold HIVE and mostly SWAP.HIVE for HBD (and SWAP.HBD, respectively) at around $0.65 (so not exactly the top), expecting the pump to deflate. I will buy back HIVE as the dump part does its course. If everything goes as planned, I would probably have doubled my liquid SWAP.HIVE during this time.
By the way, I don't exclude the possibility they still have the force to pull up once more from here. But from what I saw in the past they want to wrap this up within 7 days, to not give a chance to any large power down to trigger and dump on them.
Likely this will turn out good for my HIVE goal, but still, these pump-and-dump schemes are bad for HIVE.
Posted Using LeoFinance Beta
Actions like this usually do not affect people with a long term view, the content creators on Hive. If anything it will turn off more short term orientated traders. And that I have no problem with.
Posted Using LeoFinance Beta
It can turn off large investors, regardless of their timeframe.
Posted Using LeoFinance Beta
If they are turned off by a pump and dump that has nothing to do with the community then I would argue they are not the right kind of investor/community member in the first place.
Any serious investor, large or small, will (well, should) look past that and focus on what makes the community worth investing in.
I was talking about those from the outside looking at reasons why to get in or not. And one of the things many look at is the chart, like it or not.
Pump and dump only facilitates wealth transfer and no real added value.
Agreed. It hurts on the confidence side because it can be manipulated so often.
Posted Using LeoFinance Beta
Yeah. When I see a pump like this I stop my DCA.
That's a good idea.
What is the Upbit account on Hive holding all the Hive?
Posted Using LeoFinance Beta
They hold most of the volume among centralized exchanges listing HIVE, and that gives the price for aggregators like CMC and coingecko. Especially their HIVE/KRW pair during pumps, which is also not very accessible, due to the KRW token it is paired with.
To hold the hive , they need an account though like binance. It's seems strange they would build up such a large position without the user's there.
Boss level trading ;)
Posted Using LeoFinance Beta
I see. I also bought HBD. I hope the pump helped, I intended to drop it into USDC-HBD. Now I wonder if I should hold it to buy Hive, and pump my bag?
Posted Using LeoFinance Beta
The pump definitely helped, as you (and I) got more HBD for our HIVE. That's the question I ask myself really. If I should wait for lower levels of HIVE or not.
Thanks! I see the support is holding so far. Even though the general market is dropping harder today. I thought it would go through, but it didn't, yet.
Thanks for sharing! I've been thinking about it for a while, I think I'll do the same thing, but the amount is ridiculous for me. Let's see what comes out...
!CTP
Posted Using LeoFinance Beta
I don't know. Maybe you should wait... It's at the support level from the last few days and I see it holds even if the crypto markets are more aggressively going down again.
I've already taken the risks. 😉
Posted Using LeoFinance Beta
It looks like there's been another lower bump at around 0.66 after the 0.71 from yesterday. This affects a lot of users preparing for the PUD, there's a chance that the price will drop on the 2nd day of the month.
Posted Using LeoFinance Beta
Nice catch about the PUD! I didn't think about it. Maybe they timed it well after all if people will buy HIVE to power up and support their potential dumping at the time.
Price action in a bear market is probably better than apathy
You have a good point here.
I didn't know that these pumps begin on Upbit... Thanks for that info... Maybe I should follow the price there more closely and do some trades as you did... Definitely a great move!
Check the volume on CMC or coingecko for KRW/HIVE. If it's above $10 mil and HIVE is pumping, it's very likely their doing.
It's more for the short-term and I don't really pay attention to prices. It only changes the ratio of HP and HBD I get. As my goals include both of them, I don't see any issues.
Posted Using LeoFinance Beta
Sure, for a long-term holder, it's not important at all. They might matter if an outsider wants to invest and looks at the chart and sees the pump and dumps and realizes how easily price can be manipulated for the short term.
Thanks for sharing. I wondered what caused the pump.
Posted Using LeoFinance Beta
When an unexpected huge pump for HIVE happens in a short term, check the markets on the aggregators. If the volume on KRW/HIVE is really high (over 10 mil USD intra-day), Koreans are pumping it.