Ethereum Classic Price Holds Strong: Huge Wash Trades on FCoin Exchange

Ethereum Classic (ETC) is holding steady amid a general market decline, marking up 2% gains for the day at the time of writing. Trade volumes are once again approaching a weekly high of just over $200 million, but a significant number of trades have not been counted as fee-less transactions on the FCoin exchange continue to ramp up.

ETC Price Holds Strong

The Ethereum Classic coin price has fluctuated throughout the last twenty-four hours, reaching a low of $16.67 and a high of $17.23. The main portion of ETC’s growth came in a twenty minute period starting at 8:30 UTC this morning, Monday 30th. The coin price shot from $16.77 to $17.16 within that time – a near 2.5% growth.

The suddenness of the growth follows Bitcoin’s price movement pretty closely, but on a delayed timescale. At 00:44 UTC last night BTC experienced a sharp dip of 1.7% – not a huge number but significant enough to register an impact on the altcoins around it. BTC’s dip had largely recovered by two hours later, but Ethereum Classic took longer.

Since the high of $17.23 a few hours ago, the price has since trailed off down to the $17.08 mark, with the 1.96% growth for the day continuing to climb incrementally – one of only 18 coins in the market cap top one-hundred to do so today.

Wash Trading on FCoin

FCoin is a recently launched China-based exchange which attempts to attract users to its platform by negating typical transaction fees associated with crypto trades.

Right now, FCoin has registered daily volumes for ETC at over $100 million. None of these trades will be counted, however, owing to the negation of fees mentioned above. The $100 million sum is half of ETC’s actual daily volume, but statistics aggregators like CoinMarketCap refuse to count it in official readings.

In fact, there are currently around half a billion dollars worth of trades on FCoin that won’t be counted, and many have already suggested that the FCoin exchange is a scam in itself.

Trading fees are negated by having users pay their 0.1% tx fees in the native FCoin Token (FCT). Traders see their fees returned to them in the form of FCT tokens, which act as a way to redistribute revenue back to the traders. Authorities and regulators are already starting to examine FCoin closely, with many seeing a clear Ponzi scheme in the making.

For another example of a fee-less exchange with heavy suspicion falling upon it, see BitMEX. Right now there are $3 billion worth of BTC/USD trades on BitMEX, just short of the official $4.3 billion daily BTC volume. Further complicating the process of finding accurate market readings, BitMEX purportedly offers a derivatives market, as opposed to actual spot trading.

Featured image courtesy of Shutterstock.

Author:
Greg Thomson is a freelance writer who contributes to leading cryptocurrency and blockchain publications like CCN, Hacked, and others.