1 Syscoin = 96 BTC. How did it happen? What is a cryptocurrency pump?

On July 4 at night, a large exchange market Binance stopped all the trading transactions because the price of Syscoin token has rocketed in 2.4 million times in a couple of seconds. At the peak moment, its price was $ 624,000. What was it: pump or system failure? Let’s clear it up.

What is pump?

Pump is an artificial price increase of a particular cryptocurrency.

Why is it necessary? It is needed for making a big profit. Pump is happening according to the following scenario: you invest a large amount of money and start buying up all the coins of a certain cryptocurrency available on the market. In that case, the impression of increased demand is created. The exchange rate goes up and other traders also notice it – they start buying up this cryptocurrency too, hoping for fast money earning. Such traders are called “hamstersâ€�. Whenever this happens, you totally sell your asset and hit the jackpot – this is called a “dumpâ€�. At this time, the price of cryptocurrency is sharply reduced – hamsters remain with coins, which have cheapened by hundreds percent in one second.

The coin’s price has increased in less than a minute

“The coin’s price has increased in less than a minute�

Types of pumps:

  • Short-term ― with the help of this pump the coin’s price can increase dramatically in one second. Short-term pump is more often carried out by a group of traders.
  • Long-term – the coin’s price in that case is increasing for a longer period of time. It can last from several minutes up to several days. This is a more global type of pumps. The preparation for this type of pump is made beforehand: fake newsbreaks are created, rumors that prepare the market for pump are being spread to heat up the audience to prepare the ground for a gradual pump begins.

How did it happen, that Syscoin’s price has reached 96 BTC for only one night?

On July 4, exchange market Binance stopped all its trading transactions. That was the inviting picture for all the traders, who decided to visit the platform’s web-site on this day.


It happened due to several reasons:

  • Syscoin was sold for the price of 96 BTC;
  • This has caught up the attention of cryptocurrency’ creators. They have noticed massive bot’s activity;
  • Users have informed that they have problems with funds depositing on Binance.

“As a precaution we had requested exchanges halt SYS deposit/withdrawal today after we observed odd trading behavior coupled with atypical blockchain activity. After investigating the Syscoin blockchain is safe. We are asking exchanges to reopen.â€� – the developers of Syscoin posted in their Twitter account.

More than one billion of Syscoins were mined from one block, in spite of the fact that the volume of issued coins of this cryptocurrency was 888 million.

What was it: pump on-purpose, malfunction or just an accident?

It is reasonable to assume three versions of incident:

  • “Accidentâ€� – someone by mistake has put the price of 96 BTC per 1 SYS, taking into account that average market price of Syscoin at that moment was about 0,000096 BTC.
  • System malfunction – the cause of unexpected “rocketâ€� of Syscoin was a software problem.
  • Short-term pump – here everything is clear. A group of traders or some individual decided to make a good profit and performed the above-mentioned scheme.

After the incident, the administrators of the Binance platform have announced that the exchange market is stopping all the trading transactions in connection to the technical works. Later, the company’s representatives have announced the API keys reset for all the customers. At the moment, Binance is available for traders.

This has already happened: in March, the rate of Viacoin has rocketed in 70 times

Traders of Bitcoin.com named the that incident “mega-pump.� At that time, the exchange rate of Viacoin has increased in a short period of time from $ 3 to $ 200.

Similarly, the administrators of the Binance exchange market, where unpopular Viacoin was traded, first of all have thought about the platform’s hack. The inspection did not detect any hacker’s attack, but the pump creators have really got access to the API keys of local traders. As a result, hackers got the opportunity to make trading deals on behalf of the users on the exchange market. Later on, the bot has sold out all the altcoins from the accounts and invested in Viacoin.

The Binance management, at that time, has stated that only those traders, who were using API-keys, got affected.1

It should be noted that, so called “mega-pump� of Viacoin had a negative impact on the entire cryptocurrency market. BTC exchange rate fell down by 10%, as well it had a negative impact on the altcoins.

Сообщение 1 Syscoin = 96 BTC. How did it happen? What is a cryptocurrency pump? по�вили�ь �начала на FinTab Crypto Portfolio.

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