How top investors are playing on emotions of new cryptotraders, or why there is no need to be afraid of the drawdown of the market
It is very easy to confuse positive news with the negative ones in the cryptoindustry. That’s what happened with inexperienced traders this week when they began to hastily sell their digital assets. What was the reason of the panic among them and provoked the fall of the market?
The Binance exchange repelled the hack attack and prevented the theft of funds from accounts. They were all connected to the trading bot that was hacked. The hackers carried out speculative actions on the currency thereby dramatically increasing its value. The security system of Binance immediately fixed the vulnerability, blocked these accounts and did not allow to get a single coin. However, the media, for the most part, replicated the news as “Oh, God, Binance was hacked”.
The statement of Nobuaki Kobayashi, the Trustee of the exchange of the bankrupt Mt.Gox, was totally misinterpreted. He told that he had sold BTC and BCH for more than $400M. He had to indemnify creditors of the exchange this is what fiat money was urgently needed for. That is, he kept his funds in cryptocurrency and easily turned it into fiat money when needed.
The financial services agency of Japan suspended the work of two cryptoexchanges: FSHO and Bit Station. The reason was the vulnerability of their internal security systems. Having eliminated it, they will again be able to open. If you look closely, the actions of the regulator appear in favor of traders, as well as the fact that the agency ordered five other exchanges, and namely Tech Bureau, GMO Coin, Bicrements, Mr. Exchange and Coincheck to provide a plan for security improvement by the March, 22.
The statement of the Chinese Central Bank is to be viewed upon in a similar way. It did not recognize the cryptocurrency as a means of payment because its too rapid expansion may lead to negative and unexpected results. This suggests that the Chinese authorities take time to work through the necessary legislation.
- Why this news was filed by CNN, Bloomberg and other major media in a dramatically negative way? Because it is profitable for large investors with serious capital, — explains Dmitry Sheludko, Head of Investor Relations at CREDITS. — Due to the formation of a negative background, inexperienced punters start panic and sell their tokens. The market sags. The rates of Bitcoin and Ether are falling down followed by other currencies that can be bought up at lower prices. At the same time, experienced players start buying, building portfolio and investing in future growth. This is a classic strategy of the financial giants. This explains the fact that despite the sagging market, its volume has increased dramatically. The beginners were selling out, and the experienced players were buying up.
This market decline also resulted in a slight decrease of the CREDITS token thus giving the opportunity to buy it at a better price.
Meanwhile, the experts predict a soon improvement of the market. The rise is expected after the meeting of the G20 to discuss cryptocurrency scheduled for March 20.
- Don’t play by anyone’s rules — read the news properly and don’t panic — the CREDITS team makes an appeal to everyone.