Trading for FTX Token (FTT) on Binance has been chaotic with wild volatility. It looks like someone was trying to pump-and-dump the coin.
Is everything OK at Binance? The market activity of FTX Token (FTT) is raising eyebrows after a massive wick was posted that seemed to defy rational expectations.
FTX Token (FTT) has been acting strangely in the market. Although little known within the cryptocurrency industry at large, the coin boasts a significant market capitalization of $256M. However, liquidity remains relatively low, which makes it prime for manipulation.
It seems like someone did attempt to pump-and-dump FTX Token, but it’s unclear how effective it was. As Ichimoku Scholar (@IchimokuScholar) illustrated in a screenshot earlier today, the coin saw some wild fluctuations recently. It almost hit $3.80 and then dropped all the way down, close to $0.40, before stabilizing around the $2.60 mark. The massive wick has to be seen to be believed.
All in all, pump-and-dump schemes are not uncommon in the cryptocurrency world – and it’s yet another reminder for traders to always exhibit caution when trading. It would be sad to hear that someone ended up buying the scam wick to $3.80.
Is Everything OK at Binance?
Binance has repeatedly come under fire for ‘insider trading’ and market manipulation. Sometimes, the circumstances are too telling to ignore, especially when coins rise before major announcements.
Before Binance added XRP futures in January of this year, for example, the price spiked significantly. This led to accusations that the exchange was engaged in insider trading. Binance CEO Changpeng Zhao (CZ) denounced such claims as ludicrous, but a similar pattern played out before Litecoin futures were added. A similar situation was criticized when Ravencoin (RVN) was added to margin trading on Binance, which also saw a marked rise 12 hours before the actual announcement.
Binance has always had issues with low liquidity manipulating prices. However, it’s unclear whether these are orchestrated actors – or, at worst, if Binance itself is involved in any way. Critics have said that the exchange manipulates its numbers, but it still remains among the most trusted exchanges in the industry. As CZ repeatedly says, ‘Funds are SAFU,’ but maybe trading illiquid altcoins like FTX Token is not-so-SAFU.