Connect with us

Altcoins

Pyrrhic Victory: Bitcoin SV delisting has stoked a fear within the market; are exchanges kingmakers?

Avatar

Published

on

Pyrric Victory: Bitcoin SV delisting has stoked a fear within the market; are exchanges kingmakers?
Source: Pixabay

Bitcoin SV [BSV] being ousted by the top cryptocurrency exchange in the world, Binance, was seen as a triumph for the collective industry, a victory over “bullies” trying to press their “false” claim through forceful litigation. Many cryptocurrency proponents lauded Binance and several other exchanges that followed, as fighting back against the BSV camp.

In the midst of all this, the very principle that was being upheld was being weaponized, according to many in the space. Within a day, three top exchanges voiced their opposition against one coin, leading to the price dropping by over 20 percent.

Some decided to veer away from the trending #DelistBSV campaign and took a step back to look at the larger picture that was painted through this delisting dilemma. The likes of Jimmy Song, the vocal Bitcoin [BTC] developer, and author, as well as Nic Carter, the co-founder of Coin Metrics, said that Binance’s delisting reveals the firm grip that exchanges have on the complete cryptocurrency market.

DECENTRALITY: Not just for cryptocurrencies

You would expect Jimmy Song, an outspoken critic of the BSV project, who has called the project a “fraud” and Craig S Wright a “scammer,” to be ecstatic with BSV being axed out. However, he stated that to take temporary joy in delisting of a cryptocurrency from an exchange behemoth like Binance was myopic, and in the long-term, this will be “bad.”

He added that given this cut-throat response by exchanges, not isolated to Binance, they will be seen as “kingmakers,” when, in reality, they are far from it. Song tweeted:

“Unpopular opinion: Delisting coins is satisfying short term, but ultimately bad. It’s giving the perception that exchanges are king-makers or legitimatizers. They are not.”

Many in the community have echoed Song’s claim, adding that the centrality of control is not just for networks and virtual currencies, but also for exchanges. If one exchange’s decision can have such a spiraling effect on a coin, what’s stopping them from imposing the same pressure on other cryptocurrencies, asked many skeptics.

Nic Carter opined that the susceptibility of Bitcoin SV to exploitation due to its dwindling hashrate should be the main reason behind exchanges delisting the coin, and not merely the actions of its spearheads. He stated that due to the whimsical nature of many exchanges following the top exchanges’ footsteps, it does “evidence how much power exchanges have.”

He added that this sentiment is not limited to the BSV camp:

“If fraud from the chief promoters is sufficient reason for delisting from Binance… almost everything should be delisted. We’re still in the wild west era of cryptocurrency, like it or not totally unregulated, unaccountable exchanges are the kingmakers. I for one am excited for this to change.”

Exchanges have infused into the very core of decentralized currency, but the need for a decentralized exchange is now more than ever, stated many. However, if isolated public sentiments are to be gauged, it would still point to delisting, as pointed by many to be sufficient evidence to a decentralized decision to delist.

PRINCIPLED PARALLEL

On the other side of the aisle, the delisting defenders can be classified in two categories. The one’s that argue on principle and the ones that argue on the specific anecdote in question. Principled arguments surround the freedom of any exchange to list and delist any coin they would like, based on set parameters.

The ethics of free speech were leveled by many as being the fundamental reason for exchanges to not just follow the top-dog but platform or de-platform a project. Additionally, these exchanges are private enterprises, after all, not bound by a legal or constitutional document to adhere to a collective cause, that would be against what the crypto-space stands for.

Furthermore, Binance did not act unilaterally or unexpectedly, CZ hinted at the delisting days before the actual announcement. In that time, Binance could have gauged public sentiment, which was tilted heavily towards delisting, prior to pulling the trigger. The delisting was not a step taken out of personal malice on Binance’s or CZ’s part, it was a growing movement that the vast swaths of the community echoed.

The anecdotal reasoning behind the Bitcoin SV delisting was down to the performance of the coin. In the words of Eric Lombrozo, the co-CEO and CTO of Ciphrex group, the “mountain of evidence that something is being sold through deliberate forgeries and your potential liabilities outweigh any revenue, it is no longer a good business decision to continue to offer it.”

Many latched on to this claim, referring to the coin as a “scam” and if this knowledge is shared by exchanges, there is all the more reason a delisting is the only right thing to do.

Peter McCormack, the WhatBitcoinDid podcast host who was hit with a legal notice from the BSV camp stated that “if you see fraud, and do not say fraud, you are a fraud,” referencing the words of Nassim Taleb, from the book “Skin in the Game.” The claim of the coin is a “fraud,” and everyone’s duty to report the same should be sufficient reason for delisting by exchanges.

Despite the division of opinion, Bitcoin SV’s delisting has been met with open arms by the collective community. However, a fear has been stoked within a few that the exchanges, which were once seen as intermediaries, have surged to a point where they can have a detrimental impact on the future of not just one virtual currency but the market as a whole.





Subscribe to AMBCrypto’s Newsletter


News

GateHub: Stolen XRP funds transferred to prominent exchanges

Namrata Shukla

Published

on

GateHub stolen XRP funds moved to Bitfinex and OKEx
Source: Pixabay

The GateHub hack that took place earlier this month resulted in the exchange losing nearly 23 million XRP worth approximately $9 million. However, Whale Alert, a tracker of large crypto transactions, alerted the community of these stolen funds being moved to various different exchanges.

One of these exchanges was identified to be Bitfinex, which received 400,025 XRP on June 16 at 10:57:22 UTC. The sender’s address was r4hyDYXv7iV3oCahxQzqYYfgxwyBx3AyMN and was identified to be from the GateHub hack 2019. The receiver’s address was identified to be Bitfinex’s- r9o9MerrS7d2GAEs6JPj4v4JcvZAJNtLUY. The hash rate of the transaction was 21124F7818A2903E9750456D603CC9AACC9DBE6CE2EF0AA191C734339B4CA682 and the transaction details were as follows:

Source: Whale Alert

Source: Whale Alert

Another transaction was noted to take place to the Bitfinex wallet address where 100,000 XRP was transferred from another identified GateHub hack address. The identified Bitfinex’s wallet address was rDcz7P9YMpffLKhRBovTzhUr3wKtk3y9q7. This wallet address was quick to transfer the funds immediately to another exchange, OKEx. OKEx previously received 3,000 XRP from the stolen funds to an identified OKEx address- rUzWJkXyEtT8ekSSxkBYPqCvHpngcy6Fks. The hash rate of the transaction was noted to be BE97F68A20E996A2E1A37228DCBD45A1F26E8E2B3A842E9FCFFF7721157C1C37 and following were the transaction details:

Source: Whale Alert

Source: Whale Alert

The stolen funds were moved to another prominent exchange, Binance, and CZ was swift to inform Whale Alert that he would look into it. However, the crypto users did not find any relief about these funds going to other exchanges as the exchanges did not respond to the large transactions.





Subscribe to AMBCrypto’s Newsletter


Continue Reading

Trending