The price of cryptocurrencies are volatile at best, but this year, the entire market completely plunged, and it still has not fully recovered. Many factors were assumed to be the reason for this crash, including the threat of crypto-regulation by national governments and frivolous mainstream investment, but the drop in Bitcoin’s value was actually down to just one person.
31 year old Brandon Chez, the creator of coinmarketcap.com has been held responsible for this recent drop. The developer launched his site years ago in 2013, and it has been designed to track the changing value of Bitcoin and other cryptocurrencies, by combining data from other exchanges. As virtual currencies became more popular, his website quickly became one of the most popular in the world.
The demise began when he made a huge change to his website, by removing South Korean trading activity from the algorithm that picked pricing. His reason behind doing this was because values in this country were consistently higher than anywhere else. Instead of announcing plans for this change, he just did it, which immediately drove down the value of cryptocurrencies.
The response was instantaneous, with prices continuing to drop. Despite this though, his website still remains as popular as it was, and the one person responsible has until now managed to stay out of the spotlight.
The same thing could easily happen again, and it is a problem that has no clear solution, besides regulations. Until then, it is a risk that you take when investing in cryptocurrencies. This is why research is important. Knowing how volatile and risky the market is, will help you to make more informed investment choices.
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