Glitzkoin has been talking about Bitcoin prices being manipulated for over a year. Crypto investors refer to this manipulation as price pumping. It is no secret that wealthy crypto investors holding, large volumes of BTC are often behind big price pumping campaigns. There are two ways in which Bitcoin prices are pumped.
In the first process paid crypto media content, publishes exaggerated Bitcoin price predictions. The content could also contain false narratives that, aim to paint a rosy picture of BTC. The second process deployed to pump Bitcoin prices is a bit more subtle. The pumpers could actually buy some BTC in the markets. This could involve substantial financial outlay – publishing misleading crypto media content is generally, more economical for the pumpers.
The objective of Bitcoin price pumping is to generate mass demand, for the crypto. This pushes up the price, some investors sell and make money. The big money makers are obviously the pumpers. The price of Bitcoin then drops as sellers turn active. The same process is applied multiple times, the pumpers end up making huge profits.
A few posts have cropped up on Twitter which seem to hint that, legal action could be taken against Bitcoin pumpers. Taking a broader look, the question would be about legal action against, crypto price pumpers in general – not just those dealing with Bitcoin. So what we are looking at here today is about, investors being deliberately mislead.
It is important to understand that, crypto legislation is still being formulated. The degree of progress made by nations in formulating and implementing crypto laws, varies widely. Let us not forget that crypto happenings, do not respect geographical boundaries. As an example a crypto crime could be committed by, an individual in one nation, the victim could be located in a different nation and the crypto exchange used to commit the crime – could be in a third nation. With no serious attempt being made to maintain uniformity in crypto related laws, tracking and punishing wrong doers in the crypto industry, could face major obstacles.
Irrespective of the current status of crypto legislation, it does seem fair to track and eliminate cryptocurrency price pumping. Thousands of crypto investors are likely to be misled by crypto pumping practices. Many of them would have faced financial loss to varying degrees. The absence of clearly defined crypto legislation, leaves victims of crypto pumping with almost no access to the law.
Glitzkoin has consistently maintained that, reasonable and fair crypto legislation is a necessity. CEO Navneet Goenka has, voiced an opinion that - uniformity at least in some major clauses of the law, are highly desirable. This would help tackle crypto crime or fraud that occurs, across geographical borders.
Bitcoin is not the only cryptocurrency that, needs legal scrutiny. Having said that, BTC has clearly demonstrated the dangers of, allowing the crypto industry to function – with a weak or no, legal framework.
GLITZKOIN: A quick recap of the Glitzkoin project and the GTN crypto token. The project was launched to improve the demand for natural diamonds and to enhance, the efficiency and productivity of the multibillion dollar industry.
The DiaEx diamond trading platform was developed using Stellar blockchain resources. The GTN token was launched as part of the project and is designated, as the mode of payment on DiaEx. Promoted by second generation diamond veteran Navneet Goenka, Glitzkoin assigned a multifaceted role to the GTN token.
The trading platform was completed in 2019 and was put through rigorous testing in early 2020. A team of diamond dealers subsequently did a pilot run on DiaEx with, actual transactions made on the platform. This process was largely successful and revealed a few areas for improvement. The Glitzkoin tech team was handling the minor adjustment when, the pandemic and subsequent lockdowns slowed down the process. The management will reschedule the full launch of DiaEx once the health crisis eases.
Talking about the multifaceted nature of the GTN token, the project is also focused on further increasing usage for the crypto – this aside from crypto exchange trade and the payment usage on the DiaEx platform. The concept is to have operators of various businesses, accept the GTN token as a mode of payment in their operations. Moving this idea forward Glitzkoin has confirmed a partnership with online ticketing giant Myticket.asia, wherein clients of the ticketing portal could use the GTN token as a mode of payment. Technical requirements for the integration of systems on both sides is at an advanced stage, nearing completion. Reviewing the challenges that the entertainment industry has been going through during the COVID pandemic, both managements have decided to set a launch schedule when the situation starts to normalize. The arrangement setup between Glitzkoin and Myticket.asia will form the blueprint, for similar deals to be negotiated with other business operators.