RE: What We Can Learn From The HBD Pump
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Not really a poison pill for HBD to pump upwards. I‘m wondering who’s been the pyro burning such amounts of money to pump it. Seems like an accident to me.
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Thinking the same way someone lost a lot by pumping cause it went down. I know the Upbit exchange were it happened but liquidity could help too.
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Pumping HBD is suicide
Maybe the bot picking candidates for pump-n-dump did not read the coin description properly.
BTW, there was an actual accident on Hive internal market in the heat of the battle.
Really, what happened?
Yes, I think so too. They didn't know the internal market and felt free to pump and dump smoothly. Well, well, get wrecked.
I am not the kind of person to rub salt in whale wounds just for fun, am I?
For longterm profits, maybe. They say it's all written on the chain anyway...
I do not think there was an assumption Upbit/Bittrex are the only places to trade it (although the lack of listings might have helped). Lots of coins are bridged to other chains these days. The real surprise was the fast printing they triggered.
I dont think it is an accident. I have a feeling those behind it on Upbit made a pretty good sum.
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How's that possible, what's the gameplay?
Simple. They have a closed exchange off limits to non Koreans. There is a lot of HBD on the exchange. Someone (or a group) start to pump the price up and gets the activity going. They can do this by wash trading among themselves. When the price shoots up, they sell their holdings at $2 or whatever, and pocket the difference.
By the time the price topped and headed back down, I am sure the pumpers were long out of the trade.
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That is all assuming that there are genuine buyers for a good volume of HDB. What if there weren't any and they got smashed by the arbitrage vs the internal market losing big times.
Do you think that's impossible?
Well, the risk is rather small - they accumulate HBD for $1 so the only expense is buying all outsiders' sell orders on Upbit at a premium. They are not buying those $1.5 HBD (SWAP.HBDs/pHBD/bHBD) after the race begins (unless they run out of stock and conditions are still favourable).
The principal gap of the story is not "Kim made money". HE probably did. OP's story is "Kim made money and we could not stop him, HBD pumps hurt Hive blockchain".
One gap is the lack of damage. A few hours of $1.3 HBD is not a damage so let's present a threat of a few hours of $0.7 HBD instead. I do not think there was a full-hearted attempt at disproving my claim the threat is phantom (elsewhere ITT).
The other gap is the no-arbitrage claim. If I wash trade HBDs at a local chess club and trick a few guys into buying high (cheating you out of your opportunity to arbitrage my ass), noone will even know. The movements on other HBD markets prove that there were arbitrageurs in the game as the mobsters surely did not need to restock right off the start.
I can understand the political POV - let's find an enemy (mobsters) and CTA the average Joe "Be a good Hivean, have HBD ready to defend our homeland." OTOH, I am not a good Hivean so I just enjoy a prime opportunity to either learn something new (if I am missing anything) or have fun ridiculing a full flock of parrots for their lack of critical thinking (in case I happen to be right).
The combination of pushing a low volume price index on CEXs to trigger AMM Pool is for sure a valid attack angle eventually.
Let's say I have 50k$/50k$ HBD/ShitcoinABC pooled and make the HBD spike 3x to increase my pool share in the ShitcoinABC 3x. I can now withdraw that Shitcoin before letting the HBD price drop dead again.
Does that make sense in a real-market scenario?
I do not think I get it - there is no way to sensibly pool 50k HBD with 50k of real altcoin, so I have to assume you just want load up an near-empty HBD/ShitcoinABC so that you hold 99%+ of it.
Now if you spike HBD to $3, people start buying ABC and pumping it into your pool until you end up with little HBD and big bag of ABC that has no value.
More generally, if you are going to pump HBD, you exit all LPs first. To exploit the pump, you just buy HBD from any pool you can find, shortchanging those who left their liquidity in (and rapidly resell HBD elsewhere for the inflated price).