February 22, 2024

Why did the BitUSD stablecoin exchange rate rise to $ 34 at CoinMarketCap?

Why did the BitUSD stablecoin exchange rate rise to $ 34 at CoinMarketCap?

On August 12, an unprecedented increase in the rate of the stablecoin BitUSD (BITUSD), issued by Bitshares, began. Onover the course of a month, the price of a coin fluctuated around $ 1, then there was a sharp rise, and the cost of cryptocurrency reached $ 34.44 in two days on the CoinMarketCap website.

The reason for the unusual dynamics of the course changeBitshares employee Ross Walker explained. According to him, the incident occurred through the fault of the CoinMarketCap portal. Walker said the online resource did not take into account the most popular trading pairs with BitUSD tokens when determining the value of an asset. Due to this, the market liquidity decreased, which in turn led to a rise in the price of stablecoin.

CoinMarketCap representatives admitted thatthe company did not take into account some market data, since Bitshares does not meet the requirements for crypto enterprises after the implementation of the Phase 2 upgrade. However, portal experts claim that the information has not been taken into account since June of this year, while the price of the coin began to grow only on August 11.

The consultant helped to understand this paradox.Colin Platt. In determining the BitUSD price index, CoinMarketCap used data on the asset rate on the OpenLedger exchange against the Scorum Coins virtual currency (SCR). The remaining trading pairs were excluded from the algorithms, which is why the price of the asset was about $ 34. Platt found out that only one user engaged in the exchange of SCR coins for BitUSD under the nickname marketcorrector01 (most likely a bot). On August 11, he began to buy and sell SCR tokens at the rate of $ 0.025. But in some cases, the bot sold assets at a lower cost ($ 0,0004) to traders t3ran13 and mesan88.

According to Colin, CoinMarketCap recorded a sharpSCR price drop in relation to BitUSD at those moments when the bot was selling tokens at $ 0,0004. Thus, the stablecoin exchange rate rose to $ 34. The CoinMarketCap press service confirmed the Platt hypothesis and said that the value of BitUSD was determined solely on the basis of data received from the OpenLedger exchange. Colin is sure that the pamp initiators did not make a profit, because in all other indices (except CoinMarketCap) the correct cryptocurrency value was displayed (about $ 1).