Bitcoin Gold was one of the hard forks of the original Bitcoin and many have claimed that the cryptocurrency has not fulfilled its potential. At the same time, members of the community have stated that BTG was just a ploy to scam people off their profits.
In a recent report, Only Foresight claimed that there was an exit pump persistent in the Bitcoin Gold blockchain. The research also pointed to how several tokens were being taken off the Bitcoin Gold blockchain.
Bitcoin Gold went through an accumulation period for eleven months between August 16, 2018, and July 22, 2019. During the accumulation, Bitcoin Gold hit a peak of 1.9 million tokens in the Bitfinex margin long position. The report added that in the past year, almost 11 million BTG was not moved.
The research then talked about the price pump that triggered the scare of an exit pump phenomenon. At the start of this year, Bitcoin Gold jumped by 150 percent when it was trading below $5 to settle near the $15 mark. Although this pump was massive [almost 150 percent], the price hike did not last very long.
Looking at Bitfinex wallets during the price hike, it was noticed that the long charts were falling off significantly. At the same time, the wallet balances were also falling by an equivalent amount. This shocked a lot of the members of the community, triggering several to sell. The report said:
“This is no coincidence; mark-up and distribution are starting. BTG will see a price increase that will attract thousands of retail investors to buy up the bags that this huge market participant needs to get rid of.Since the “whale” largely controls where the price goes due to owning such a big piece of the supply, the coin can be wash traded up to any price he wants to exit at.”
What caught many people by surprise is that Bitfinex is usually not a place for retail investors. The exchange had only recently announced that they would remove $10,000 capital requirement to trade on the exchange. The analysis of the report then revealed that the whale responsible for the pump was Korean. It was then spotted that the whale had tried to suppress the price for later purposes.
If Bitcoin Gold’s price rises way too quickly, then it would lead to a massive downtrend where people would make losses. Some claim that the breakeven price for the Bitcoin Gold whale was at $22.86. But then again, that is speculative and bound to the market conditions in the future.
The report said that the whale owns an estimate of 45 percent of the total BTG supply. During the 340 days of accumulation, there were 280 days of purchases. During the same period, there were 145 days where users bought more than 5000 tokens.
At the time of writing, Bitcoin Gold was trading for $10.16 with a total market cap of $177.99 million. The 24-hour market volume was at $27.769 after an 8.2 percent price drop over the previous day.