The cryptocurrency market lost $288 million in 54 minutes with a tweet. The tweet posted by a high-follower account caused the market to decline greatly in a short time.
I tweeted the cryptocurrency market and watched its course!
Cryptocurrency market bottomed out within hours with a rumor that the US Treasury department is suing some financial institutions for alleged money laundering. A popular twitter account called FXHedge warned its 122,700 followers about the ministry’s accusation in a tweet based on anonymous sources.. The tweet reached countless accounts on Twitter.
There is no clear source of information about the operation mentioned in the tweet.. Within minutes of the tweet, the Bitcoin price dropped from 59,000 to $52,000.. Ethereum dropped from $2,260 to $1,970. Binance coin fell from $ 501 to $ 440. A liquidity of $7.9 billion was triggered in an instant.
However, there are also those who say that such a serious tweet, which was thrown without giving a source, is not reliable.
Jake Chervisky Compound Finance consultant, says the tweet is not credible because money laundering cases America Justice within the scope of the ministry. In addition, Cervinsky says that there is no practice of filing lawsuits against several financial institutions at the same time.
“I don’t find this tweet convincing.. As if bait was thrown on the fishing line, and some swallowed it.. Treasury Department not authorized to charge money laundering charges. And several financial institutions cannot be sued at the same time.. In addition, investigations into crimes are conducted top secret and are rarely leaked to the press.. I did not find these unnamed sources credible at all “
Also, this account named FXHedge has made false claims in the past.. He adds that this account should never be taken seriously.
The fragility of the crypto market
It shows how fragile this market is if a bait can be thrown and billions can be wiped out in an instant.. It’s clear how sensitive the cryptocurrency market is to rumours.. Twitter users can mislead the market by tweeting.. We have witnessed similar incidents before.. A tweet can raise the market as well as lower it to the bottom.. The immaturity of the market may be one of the main reasons for this.. We hope that such incidents will not happen as the market matures and cryptocurrencies are adopted.
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