BITCOIN DIAMOND IN THE HOUSE
“Pump and Dump” demonstrated
Bitcoin Diamond is a coin that was created as a result of a Bitcoin hard fork. To sum up a “fork” as shortly as possible, it’s a protocol upgrade of a coin, as a result of which the original “old” coin remains and a new one is created, functioning with the upgraded protocol. Bitcoin Diamond was “born” on November 24th 2017, as a result of a hard fork. It remained quite unnoticeable until 2 days ago.
When Bitcoin Diamond was created there was not too much happening around it. Its value was moving near 0.002 BTC. Until 2 days ago. On January 13th, in a matter of hours, Bitcoin Diamond’s value increased by more than a thousand percent. I, personally, noticed it when the increase was 250 percent. I didn’t think of investing in it because it was not reasonable to think that it could go higher. An hour or two later I checked it again. Its daily growth stood at more than 500 percent. It was frustrating and I could feel what they call FOMO, that is the fear of missing out but it was quite obvious that it was too late to buy in. So, I just followed it from the background and, just like everybody else, I couldn’t believe what was going on.
What actually was going on is nothing more than speculation. The name of the game is “pump and dump”. “Pump and dump” means inflating the value of a coin that has been produced or acquired cheaply. The sudden jump in price attracts a lot of attention and people, feeling FOMO, start buying so that they get their share of the quick profit. But when the price is pumped high enough the manipulators in the background, who initiated the “pumping” phase, suddenly start to sell in huge volumes, cashing out their profit and bringing down the value of the coin to a fraction of the pumped price, leaving most “small players” trapped with the devalued coin.
That's what happened to BCD, too. It was such a clear manipulation that the Kucoin exchange issued a warning to its customers on twitter, saying “Today Bitcoin Diamond (BCD) had a HUGE spike …, we just want remind all our users and people investing in Cryptocurrency to invest rationally and manage your investments with control.”
The lesson for those who monitor the exchanges waiting to buy in at the right time: When the price is going up vertically, by the time you usually notice the upward trend there is very little chance for making good profit, however there is a huge risk of losing a lot. Don’t let your emotions take control. If you want to trade always keep a cool head and rely on the experience of professionals.