Why are cryptocurrency prices plummeting this time? | finder.com.au

What’s Ether up to?
Ether took a high dive, with interesting patterns emerging across different exchanges and coins.

Its drop started on Bitfinex, but ETH prices followed suit on other exchanges before long and eventually went as low as $520 overall. However, on Bitfinex, they continued plummeting into the $400 range. Clearly one individual, or one party, was in a hurry to dump huge amounts of ETH ASAP and wasn’t overly concerned with getting the best price possible at the time or avoiding an ETH crash.

It was most likely the EOS project. EOS crowdfunded millions of ETH for its platform, which is a direct Ethereum competitor, so it has both the means and the motive to deliberately scrap Ether prices where possible. The timing also makes sense, occurring just as Binance listed USDT/EOS pairs. The footprints also lead right to it, with 300,000 or so ETH disappearing from EOS wallets and massive amounts cropping up for sale on Bitfinex, which has typically been EOS’s exchange of choice.

But that hasn’t stopped EOS prices from plummeting too, and even tracking below ETH over the last 24 hours. At the same time, EOS/KRW (Korean won) pairs are going wild on Bithumb and Upbit. Clearly people are cashing out big time on South Korean exchanges.

It’s possible that the EOS team decided to convert ETH to Korean won via EOS, but that’s pure speculation. It might be because an EOS glut on South Korean exchanges might let them buy it back at even lower prices later, while the larger ETH markets wouldn’t be as cooperative. Or simply because that gives better value for money than cashing out so much ETH directly. But it’s all pure speculation, and EOS/KRW pairs have always been popular anyway.

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Why are cryptocurrency prices plummeting this time? | finder.com.au.