The crypto market is shaky at the moment. The market cap is below $500 Billion, and most of the top 10 are down between 10% and 20% over the last 24 hours.
Two big developments happened in the last 24 hours.
- The Bitfinex / Tether fiasco is finally rising to the surface. Our team, and plenty other people in the crypto industry, have spent months looking at Tether (which is owned by the worlds largest crypto exchange, Bitfinex) and commenting on how the Tether issue currency has increased to quickly to match the dollar (or other asset) reserves they are meant to have backing it up. Tether was about $500 Million a few months back, then jumped quickly to $1B, and in the last few weeks it has increased by another $1B, with certain days increasing by $100M a day. That means that Bitfinex & Tether had to deposit massive amounts of money into Dollar accounts to back it up – the issue is that their Bank closed their account a few months ago, and as they won’t let anyone audit their account at the moment, it is unsure if they have found another bank, and whether they actually have $2 Billion sitting in this account (or any funds whatsover). The result is that they could have been issuing more Tether’s to prop up the market, which would be fraudulent. Or perhaps they have the funds in an account, and just don’t feel the need to make the world fee better! This week, the US government finally got involved, and sent Tether & Bitfinex a subpoena to confirm they do have the funds backing up Tether. If they don’t have the funds (which most of the crypto market believes is entirely possible), the crypto markets could be jerked downwards at a rapid rate (unless the market has already factored Tether and Bitfinex into the equation as smart efficient markets often do).
- Have you seen dozens of adverts on Facebook talking about everything and anything crypto – from new ICO’s to airdrops, to BitConnect Scams, to tons of other crypto related news and information and ideas and.. Well, yesterday Facebook decided to do something radical – they banned ALL crypto related advertising. Everything! So the legitimate startup’s and news sites now can not advertise on Facebook, and have been swept under the carpet along with all dodgy crypto offerings. Quite an extreme move, as Facebook was probably making a lot of money from all this crypto ad activity. What is interesting is how this will affect Facebook fan pages which are crypto themed, and which want to do sponsored postings – for now it seems these pages can still exist, but that they won’t be able to do sponsored facebook posts, or do any other type of advertising on Facebook.
So obviously, with this amount of negative crypto news, FUD dominated, and other more serious crypto day traders and investors probably also reacted, and the market tumbled, with Bitcoin below $10k at one stage. (although Bitcoin has since recovered to over $10,000 again).
Although Ethereum was down, it seems to have already partially bounced back, and it seems that Ethereum (and Eastern counterpart NEO) are definately seen by the crypto markets as the stable adults at the moment.
So with these radical crypto movements in mind, it was astounding that crypto newcomer Revain, jumped up 71% over the last 24 hours to a price of $1.89, a market cap (on CoinMarketCap) of $347M and a rank (on CoinMarketCap) of 68 (out of 1506 startup’s – and this list is growing daily as KuCoin & Binance list newcomers at a rapid rate).
Revain has only been trading since November 2017, and from a few cents, it has risen steadily to reach this new high.
Revain is listed on multiple exchanges such as Kucoin, Cryptopia and Etherdelta.
The volume yesterday was primarily on 6 exchanges as follows:
According to the Revain website…
Using blockchain technology, we managed to create an economic model, which allows common users to stay highly motivated because of our token – RVN. Using the second token – R and nonlinear conversion mechanism, Revain acquired an absolutely stable internal token. And finally, due to Ethereum platform, we were able to create a transparent system, guaranteeing immutability and incorruptibility.
It will be interesting to see what happens to Revain in the weeks and months to come, and whether this rise is a well deserved increase due to their traction, or whether the “pump & dump” gangs have got hold of Revain and are playing havoc with it’s token price.