Since the bitcoin cash arrived, the forked coins have been in vogue. While the BCH became successful in gaining traction not just on the exchanges, but also in the real world, the stragglers experienced some hardships. There is only a little evidence that the likes of bitcoin diamond and bitcoin gold are in use for anything other than speculation. This speculation show forked coins pumped to insane highs while the events in the past 24 hours demonstrate.
Cryptocurrency Like A Boss: A Diamond in the Rough
As long as Kucoin remains the best trading platform for cryptocurrency, more trading fees will be collected and therefore increasing the size of payouts to the users and KCS holders.
The community of bitcoin is appropriately split when it comes to the forks. Some people see the airdropped coins that were issued to the existing bitcoin holders. It is an egalitarian distribution strategy that created the active community and instant user base. Others may not be so sure when questioning the motives behind these projects and the lack of support in infrastructure.
They distributed the Bitcoin diamond or BCD at a BTC rate of 10:1 after its release last November. In just a few days, the forked coin was able to settle into a price bracket of around the $30 mark. Significant exchanges like Bittrex and Bitfinex refused to touch it, and the diamond appeared destined to remain languishing in the doldrums. However, in the trading stakes or the dump and pump stakes, every coin may have their day and Saturday was the day of the BCD.
Within a few minutes, the coin was able to multiply 40 times on Kucoin and sent it over $800. It caused one of the most significant green candles that people ever witnessed in an exchange. The movement made Kucoin issue a warning to their customers.
The Night of the Long Forks
Since the evening of January 12, traders went long on a lot of the bitcoin forks that they created in the past months. The action may appear to emanate from the Asian markets before the impact on all of the global exchanges that supported the coins. Because of the low price, a lot of these coins like the bitcoin file that costs around $0.2, are coupled with low trading volume making orchestrating pumps relatively easy.
For people who FOMO hard and pile into the rising green candles, there may be a risk of high failure. The meteoric movement of the BCD was obviously an orchestrated P&D. Lots of traders are unaware of the pump and dump that are taking place and they will have to sell orders set for the bitcoin diamond. Once the scheme kicks in, it was a doddle to eat through the resistance.
A majority of the forked coins may have a few real use cases. However, the events in the past days may entice the traders to set and forget their airdropped coins since then. Because of the meager sums that you can make by trading the coins at their regular price, it can be more senseful to set an unrealistic high sell order in case something unthinkable happens.