Golem (GNT) Abnormal Move At ZB.com Might Be Indications Of Manipulations
Exchanges are the biggest centralized entities in the crypto ecosystem. Due to the deregulated nature of both cryptocurrency and their markets, manipulation is more rampant in the cryptocurrency markets than virtually anything else you can trade. Since the value of cryptocurrencies is very sensitive to sentiment, emotion, and publicity, many are tempted to drive unnatural price movement and profit off of the loss of others. And unfortunately, many can actually succeed in doing so without any regulatory ramifications.
To add to the long list of tainted coins and exchange, Golem (GNT) experienced some shady trading over the weekend. It currently has a market cap of $68 million dollars which makes it the 61st biggest cryptocurrency.
This weekend saw a spike of over $40 million dollars in the daily trading volume which can be attributed to a Chinese exchange called ZB.com. This phenomenon was caught by Cryptocompare in October 2018 as the analyst noticed they have surprisingly fewer visitors per transaction ratio than the other exchange. The graph below displays the data for assessment.
It is important to remember that Coinbase Pro had listed Golem onto their platform this December, which led to the high volume on trading there as seen on the graph. Another graph shows that there was an uncharacteristic rise of over 50 million GNT tokens which fell down to about 1,200 GNT.
Another abnormal event took place at 23:22, 23:23, and 23:24 EST on January 2nd which saw numerous buy and sell orders of the size of 2915.9 GNT. The screenshot below is of 23:24.
The thing about ZB.com is that the trading fees of the given transaction amount range between 0 and0.1%. Considering if the trading is not legitimate, there are ways through which the exchange can foster these transactions.
Even the historical charts of Golem have some suspicious trends. Even though the price is relatively stable the volume fluctuates between $1million and $100million daily. However, after December 10th, just before the Coinbase listing, the daily transaction volume was over the market cap.
These are bizarre trends which both the representatives of ZB.com and Dolem should address. These types of manipulation have happened in other crypto exchanges and even in stock trading. If the institutions where such trading is possible don’t weed situations like these, it is bad both for the free market and the investors.