BTC keeps losing dominance and significance in the market no matter the downturns that were previously favoring the concentration of funds in BTC.
Although, the projects that received the most attention were just heavily advertised but contained limited prospective or revolutionary features.
There is favoritism by the market towards any vague new project development at the expense of older projects.
This is another paradox, though, since any network has to pass a certain test of time. Only within the years, we can fully understand the intentions, potential, flaws, and sincerity of any cryptocurrency and its community. Rushing into untested, undeveloped, and immature test nets is not a rational investing procedure.
Then we watch Solana rising to top-5 cryptocurrency (according to total market cap) while having a centralized network with a fail-switch and suffering even from DDoS attacks.
Centralized networks are not secure. We watch the interests of whales, exchanges, and speculators and should be taking everything with a pinch of salt.
What we don't find, even as a mention, by the mainstream in crypto (advocates, YouTubers, influencers, news, forums) is smartBCH.
There are only a few mentions while almost all popular "influencers" in the crypto field have selected to ignore smartBCH completely. Another reason why we should be doing the opposite of what crypto marketing demands from investors.
There is also this Tweet from 2020, posted by an exchange CEO, that increases suspicions about its intrinsic meaning and the current price action of Bitcoin Cash.
Price Suppression & Manipulation
Before we examine the aforementioned Tweet, we should first take a look at the cryptocurrency market with a focus on Bitcoin Cash developments and the increase in user base, adoption, and popularity. These indicators should have been enough to propel Bitcoin Cash in a top-10 ranking already if the market wasn't heavily manipulated by whales and PR.
The whole cryptocurrency industry rose at an unprecedented level, but as it previously happened, many assets are at an unjustified market cap. Cardano, Solana, Polkadot all found massive popular acceptance, although this only happened once they all performed aggressive marketing campaigns that reached coercion level.
Can we be definite that the top-20 in the crypto market today contains a fair valuation for most of these projects?
We witness today price suppression of a technologically superior blockchain network (Bitcoin Cash), one that offers instant transactions with low fees, along with fresh developments as smart-contract capabilities.
Bitcoin Cash keeps losing momentum and price keeps dropping, while with recent developments (smartBCH) and the rapid increase in userbase, we should have observed opposite results.
This is the outcome of two factors:
Low exposure to new investors (Most of them have not even read of any Bitcoin Cash developments)
Suspicious exchange activities (Especially in derivatives markets)
The suppression of Bitcoin Cash in major exchanges (spot and derivatives) makes everyone skeptical.
There are concerns BTC whales are forcing price at a lower level by over-shorting the BCH asset in derivative exchanges. This could keep happening at the risk of loss, but at an acceptable rate, since it helps BTC expand its dominance against Bitcoin Cash. Although naked shorting is illegal, we can't claim there is oversight at cryptocurrency exchanges.
Just a handful of crypto investors have inside information and any such data is not immediately available to the public, thus, exchanges are free to roam, probably allowing the practice of "naked shorting".
The ties between exchanges, BTC whales, cryptocurrency indexes, crypto, and mainstream media, have created this negative sentiment towards Bitcoin Cash since these BTC whales just want to prove a point that the market has decided.
Meanwhile, aggressive brainwashed BTC maximalists and various random and suspicious accounts in social media are denouncing Bitcoin Cash on any occasion. Probably out of fear of losing the privilege they fought for so long.
Was CZ Threatening Bitcoin Cash Among Others?
There are suspicions this tweet by Changpeng Zhao (CEO of Binance) from 2020 may explain his view on Bitcoin Cash (and some more cryptocurrencies). Apparently an arrangement is there to keep the price action of certain crypto "assets" suppressed.
... "alt" (or altcoin) is a BTC maximalist term to reduce innovation and stall the progress cryptocurrencies bring in the financial field...
Maybe this was a threat that his exchange was planning to constantly suppress the price of some "older" cryptocurrencies, just to "pump" those new ones with ties to Binance interests.
Bitcoin Cash developments on-chain and on top of the blockchain are remarkable. With smartBCH enjoying organic growth, developers today are rushing to offer new services. Excitement is multiplying the value of the network, so perhaps CZ should rethink his approach.
*I wrote the above in a previous article, and I still think CZ was including Bitcoin Cash when mentioning "alts" in this Tweet. I'm watching price action daily and can't seem to find any reason not to be suspicious of Binance (as well as more exchanges).
While Litecoin also didn't perform this year, this was reasonable since Litecoin has had almost no developments since its inception. The fact that its founder (Charlie Lee) sold all his position in Litecoin (2018) is always going to be a massive red flag that doesn't need much conversation.
Litecoin is inferior to Bitcoin Cash under any circumstances.
In terms of PoW, Bitcoin Cash has the second-best hash rate, more than Litecoin and Ethereum combined.
Bitcoin Cash is ahead offering a robust network with stable and secure instant transactions and fees estimated at a fraction of a penny.
Developments in Bitcoin Cash are constant and on top of the blockchain, we have today smartBCH, a decentralized sidechain offering EVM compatibility and smart contracts capabilities.
There was always a lot of conversation on how Binance promoted favorably certain projects in previous years (i.e. Tron) and with the BSC chain, it probably doesn't enjoy any competition from decentralized sidechains.
Binance and CZ are hiding the true intentions behind a thin veil of the exchange being a frontrunner helping the industry thrive, but it is visible to the naked eye, the only intention is to profit. Profit without any real interest for innovation and progress in this field.
Binance and CZ were always concerned just about the price of cryptocurrencies anyway. Just a glimpse at the corresponding Twitter accounts proves this.
The arguments about believing in this technology fall short the moment CZ asked Jihan Wu to rally the mining pools and re-org the BTC blockchain to cover the cost of the Binance hack.
It is obvious anyone with an authentic firm belief in the fundamentals of decentralized blockchains technology would never ask or even consider anything like that.
In Conclusion: Take Your BCH Out of Exchanges
BTC whales are likely manipulating the price of BCH and suppressing it using high-frequency trading algorithms. Every time BCH is in demand, we watch suppression mechanisms take effect at certain levels.
Traders with years of experience find the BCH patterns containing various indications of manipulation since it is all about wicks getting massively shorted every time BCH finds enough demand with breakout potential.
Perhaps taking BCH out of exchanges will not immediately help expose any such trading activity since this is derivatives trading and the overwhelming resources of the BTC whales can keep suppressing price for a while longer.
Although, if a large number of BCH is withdrawn from exchanges, the naked shorts will be exposed. The public is interested to combat manipulative tactics as over-shorting, in a similar fashion we witnessed with Gamestop and AMC stocks.
Taking any cryptocurrency we own out of an exchange is the right approach in any case. Take them out and hold or use them within non-custodial wallets.
This is the real use case of cryptocurrency, the right of ownership derived by the private key.
A secondary reason is a recent event at Binance with the suspension of BCH withdrawals. There was no other reason other than Binance not having enough BCH in its hot wallet to cover demand.
Withdraw your Bitcoin Cash today, and maybe we can expose the wicked practice of shorting without the existence of underlying assets to cover these trades.
Let's see how this goes and for how long exchanges can sustain this manipulation without BCH at their disposal.
Images:
Lead Image Pixabay (modified)
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This explanation helped