Bitcoin Diamond Price Pumps 78%, Dumps 49% Twelve Hours Later
Bitcoin Diamond (BCD) was rising steadily along with the market 48 hours ago and had chalked up more than 10% gains over the week, then came a twelve hour window in which the coin was flipped like a domain with blockchain in the name.
At 5pm UTC yesterday, BCD coins were relatively stable in the low $2.20 range. After touching $2.21 the coin’s value suddenly spiked to $3.95 within five minutes – that’s a 78% spike in less time than it takes to microwave a potato.
BCD’s daily volume just before the spike was $3.3 million – five minutes later and it jumped to $4.5 million.
The price soon began to rebound, but only for long enough to fool potential investors, because by 5am this morning the pump reversed and whoever initiated it in the first place made away with their original coins along with a nice chunk of interest.
Money In… Money Out
When the dump came, it came with the same swiftness. From a price of $4.51, BCD coins dropped to $2.30 within exactly five minutes – that’s a 49% crash. The daily volume at the time was $10.2 million, and the dump reduced that sum to $7.8 million.
So if we narrow our focus to those two five minute windows – before additional investors had the chance to follow suit – we can see that $1.2 million was injected into Bitcoin Diamond at 5pm yesterday.
At 5am this morning, a sum of $2.4 million worth of BCD was sold off, after which point the coin resumed its relatively stable trend. Would it be too blunt to assume that someone just turned $1.2 million into $2.4 million?
During this time the daily volume jumped $6.3 million – not including the volume from the pump. If you look at the pattern on the pump and dump, you can see that it relied on enough people buying in after the initial sell-off by BCD holders who decided to cash out at the initial pump price.
A History of Pump and Dumps?
Similar spike patterns have been seen on Bitcoin Diamond in 2018 alone, with one coming between July 7th and July 9th. Going back to January there was another huge spike which saw the coin multiply 40x in price – enough to prompt Kucoin to issue a warning to its customers urging them to ‘invest rationally’.
That’s if they get the chance to invest at all, given how quickly the action takes place. The people who slept through the pump and dump are actually the luckiest – their coin is back to the value it started at, and it’s as though nothing happened.
But a lot of people on the exchanges got fleeced and will be nursing wounds this mornings. Others will just be disappointed that they didn’t cash out at the peak.