CoinMarketCap takes Korean prices off the exchange – inspires panic selling

The cryptocurrency market went for a wild ride today as the CoinMarketCap.com decided to suddenly remove Korean exchanges prices in their algorithms. For those who are living here in the US you might not know that prices for cryptocurrencies in other parts of the world are typically higher, and I mean a lot higher. Someone on Reddit gave a solid explanation of what happened:

cmc-removes-korean-exchanges

Like the above except says, this sudden change caused people to think that the crypto market was crashing. Then CNBC added insult to injury by announcing that Ripple had crashed by 30% in the last 24-hours.

ripple-crashes-30percent

This is where the term FUD shows the impact it can make. Now that mainstream media is covering cryptocurrencies the way they do stocks, they are actually massively increasing the price and in the case of today, causing a lot of panicked selling. Of course this might also be because cryptocurrencies have a lot more volatility than most stocks so people are much more likely to quickly enter and exit positions.

ripple-fud-30-percent-crash

As you can see from the chart above showing the insanity of the last 24-hours, Ripple did briefly take a dive, scared a bunch of people and then bounced back up. Bitcoin took a dive around the same time into the mid $14,000 range before following on a similar path to recovery.

All this being said, there’s still a fair amount of controversy surrounding Ripple given how distanced XRP is from the Ripple technology.

“The reason ripple is surging so much is it’s a bubble,” said Erik Voorhees, CEO of digital asset exchange ShapeShift and a vocal advocate for Bitcoin as a way to separate money and the state. “Testing crypto with banks doesn’t make sense. The whole idea of crypto is you don’t need a bank.” (Source – CoinTelegraph)

This coupled with the recent market volatility is causing a lot of fear amongst crypto investors, many of whom are new to the game and think they could lose their investment overnight. Of course this hasn’t stopped people from signing up for exchanges and jumping into the madness. Currently there are 100,000 a day signing up for new accounts across all exchanges.

Something tells me this is going to be one of those weeks where every morning offers a new surprise. What do you think?

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