It is known that crypto exchanges – intermediaries between crypto assets and buyers – have had great effects on the cryptocurrency market and price movements in the past.
Crypto Users Investigate Exchanges Downtime
In a highly volatile market as we saw this week, a leading stock exchange shutdown can cause users to lose money per second. Often times, exchanges cite congestion and heavy transaction volume as the main reason for a system shutdown.
In cases of security breach, it is almost imperative that exchanges go offline to find gaps and protect users’ funds. However, this was not the case during the most recent market bloodbath, and cryptocurrency users began to raise concerns as they looked at the reliability of these exchanges.
As popular cryptocurrency user CryptoWhale noted on Twitter, more than 10 cryptocurrency exchanges, including Binance, Kraken, Gemini, Bitfinex, went offline at the peak of the bloodbath, among others.
Many cryptocurrency experts are skeptical of this, as they suspect it is just a coincidence that most of the leading exchanges go down together.
Was the Crypto Crash Planned?
Critics have been repeating the questions some investors have been asking for a while: Is market manipulation the cause of the crypto debris?
While the answer is unknown, a recent statement from an “insider” source claims that prominent power holders are manipulating the Bitcoin market for their own benefit. In a Reddit post circulating on Twitter; An anonymous user who guessed the latest crypto bloodbath says this is just a rivalry between some dubious “elites”.
Posted last night at 10pm by an "insider" about dumping #bitcoin on coordinated FUD to liquidate a stakeholder.
Fucking wild. pic.twitter.com/25c2tUse7L
— Jacob Canfield (@JacobCanfield) May 19, 2021
The anonymous user had revealed that press releases would be made to revive the FUD (fear, indecision and suspicion) and send prices to the bottom. Some of the post published at 22:00 on May 18 is as follows:
“I can’t tell you what firm I’m working for, but it’s really GREAT and it works with the People’s Republic of China. The purpose of today’s press release, as well as all FUD shipments, is to keep BTC as low as possible before 7:00 AM UTC.
First, there will be a coordinated selling pressure to lower prices below a certain threshold and liquidate a particular stakeholder (I can’t say exactly who he is, but that person bought a lot from the bottom for which he was partially responsible). ”
The user mentioned that following the liquidation, the stakeholder in question would go bankrupt because the brain of the business was planning to “buy all the reserves”. He added that in the long run, the market will make a quick correction and the price of Bitcoin is expected to reach $ 70,000. At that time, China’s central bank issued a document calling for a ban on crypto-dealing financial institutions and payment providers, and China’s statements on crypto continue to come.
While no official reference has made statements to confirm or refute the above claims, this claim has sparked a debate that the cryptocurrency market, including exchanges, may be more centralized than it appears.