This article was originally published here.
From the reason behind a big drop in the price of Bitcoin to some hard-hitting questions for the CEO of Ripple and the founder of ConsenSys, here’s a look at some of the stories breaking in the world of crypto.
A big Bitcoin reversal is underway, with BTC dropping 10.95% to $7,122 at time of publishing, according to Coin360. Altcoins are following, with Ethereum down 7.37% at $241.22 and XRP down 13.56% at $0.3844.
Michael Gu of the popular crypto YouTube channel Boxmining says he believes a single whale triggered the massive dump. The whale sold an unknown amount of BTC all at once on the crypto exchange Bitstamp, dropping the price to $6,200 on the exchange in a matter of moments.
“I actually got notified about this from my trader friends. So they were trading and they saw this actually as an arbitrage opportunity. Because the price of Bitcoin went down so fast to $6,200 here, they were trying to figure a way out to buy Bitcoin on Bitstamp and arbitrage on other exchanges…
With everyone arbitraging, the price has dipped on all the exchanges as well. This really goes to show how much power whales and big sell orders have on the cryptocurrency markets.”
According to Gu, the huge sell order may have been placed by mistake, with the seller entering a wrong digit in a so-called “fat finger” error.
“If it’s multiple different entities, they won’t all choose to dump on Bitstamp to $6,200. And the matter of fact is that if you ever wanted to dump it so low, the smart thing to do would be to spread it out over several exchanges. I mean, this is what OTC desks are for. If you want to dump a very, very large quantity of Bitcoin, they can help you spread that out over several exchanges to have a lesser impact on the price. Or even find a buyer. So, I would say this could even be a fat finger dump. So maybe someone who mistyped the number. It could potentially be typing $7,200 and mistyped it. Pressed 100% sell, boom, and that price went all the way down. It filled all those orders.
I really thought at this point, Bitcoin being the largest cap cryptocurrency, it would be less volatile and less prone to whale dumps like this.”
Ethereum, Ripple and XRP
Ethereum co-founder and founder of ConsenSys Joseph Lubin went head-to-head with Ripple CEO Brad Garlinghouse in a lightning round of questions for CNBC.
The two give their takes on Bitcoin, ICOs, XRP and what keeps them up at night.
— 𝗕𝗮𝗻𝗸 𝑿𝑹𝑷 (@BankXRP) January 15, 2018
The team at Stellar has released a detailed overview on the 67-minute halt that their network suffered on Wednesday.
“As a fundamental design choice, Stellar prefers consistency and partition resilience over liveness. In other words, when faced with consensus uncertainty, the Stellar Consensus Protocol (SCP) prefers to halt rather than operate in a potentially inconsistent state. This is different from other blockchains, in which ‘the chain must go on’ even at the price of soft forks.
Financial institutions prefer downtime over inconsistent data, that’s why they choose Stellar. It’s much better for a financial network to go offline temporarily than to produce permanent false or disputed results.
Still, with the right tooling, Stellar shouldn’t need to halt.”
Cardano creator Charles Hoskinson is offering a recap of blockchain and crypto industry conference Consensus, and says the presence of Microsoft, IBM and Deloitte shows how far the crypto movement has come in the last couple of years.
Tron’s file-sharing platform BitTorrent says it plans to reveal more use cases for the Tron-based BTT token this week. So far, the company has confirmed it will use the token to reward people who upload files on the platform.
This week we will be sharing the 4 current BTT use cases one by one. As many of you have guessed, the #1 use case of BTT is to enable faster downloads on BitTorrent Speed! However, many of you have not guessed correctly the other #BTTusecases. Stay tuned! $BTT #BTT pic.twitter.com/MS6Rcw4ebo
— BitTorrent Inc. (@BitTorrent) May 15, 2019