Possible Syscoin Pump and Dump Leads Team to Investigate Blockchain
After investigating what looked like a pump and dump, the Syscoin team has asked all exchanges to halt trading while they investigate the issue.
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A Possible Syscoin Pump and Dump
While accusations of a pump and dump should never be handed out lightly, Syscoin experienced a brief rise too dramatic to ignore. On Binance, the coin reached an astronomical level as a buy order for Syscoin was placed at 96 BTC:
Not long after, Syscoin released a statement saying they were checking the blockchain for issues:
Someone bought SYS at the price of 96 bitcoin. Yes one SYS for 96 bitcoin!
— Crypto Cryptosson (@Cyrptosson) July 3, 2018
The enormous buy order drew the attention of traders and exchanges alike. Poloniex froze trading during the coin’s rise at around 5000 satoshi in value. Trading briefly resumed, until the project team’s official Twitter put out a request asking exchanges to halt trading:
We are investigating a possible issue on the Syscoin blockchain, nothing is confirmed but we have asked for exchanges to halt trading while we investigate.
— Syscoin (@syscoin) July 3, 2018
The situation is similar to what Bytecoin experienced last May when it was listed on Binance. A pump occurred, sending Bytecoin to over 30 times its value in less than a day. Their blockchain then also experienced problems, and bagholders were forced to look on as the coin dropped in value and they were unable to move or sell their holdings.
Other users were quick to notice anomalies in the coin’s trading today:
Something is off about syscoin.
49,149 traded exactly at 20:44:04.504 UTC time over 0.000220 BTC price point.
Total orders add up to approx $106,687,824 USD at the time.
— Courtney C (@cjcdatasci) July 3, 2018
A serious problem on top of this could be at hand. One transaction on blockchain shows a value of over 1.2 billion Syscoin being moved. According to CoinMarketCap, less than half that amount are currently in circulation:
Some Twitter users were quick to refute this was a problem:
Syscoin is NOT under a 51% attack. The tx with 1.2 billion coins is someone moving 40 million SYS back and forth within the same block. Check the blockchain – it doesn't lie.
— Keyare (@Keyare_) July 3, 2018
The fallout for traders will surely be more properly quantified in the days to come.
Syscoin has experienced some other troubles recently. Last month, Syscoin’s GitHub repository was hacked, when their windows wallet client was replaced with a compromised version of the code. This allowed the perpetrator to siphon passwords and private keys from users. Syscoin’s official code has since been restored to their GitHub page.
Trading remains frozen for Syscoin on Poloniex, while it continues to trade at above 11k satoshis at press time.
Were you affected by these complications with Syscoin? Let us know in the comments below.
Image via Pixabay