The bitcoin price has been largely flat on Wednesday, rising approximately one-half-of-one percent on the global markets. At one Singapore-based exchange, however, the flagship cryptocurrency is soaring by thousands of dollars — and critics are sounding the alarm.
The exchange in question is World Exchange Services, better known by its acronym, WEX, where the bitcoin price inexplicably spiked as high as $8,999 during intraday trading. Despite a brief pullback, WEX’s BTC/USD market is currently holding steady at $8,000 — a full $1,600 above the trading pair’s global average.
The pump extended to other WEX markets, including USDT/USD, which saw the controversial tether token climb as high as $1.30 despite being pegged to physical USD at a 1:1 ratio.
It’s not immediately clear what is causing the bitcoin price to trade so far above its global average. Some observers, including widely-followed bitcoin trader Kazonomics, have theorized that it could be indicative of USD insolvency at the exchange or even an outright exit scam.
— Kazonomics (@kazonomics) July 11, 2018
Others, however, have said that it likely stems from the illiquidity of WEX’s USD markets, as well as the fact that the exchange charges hefty fees for fiat withdrawals.
Given the price discrepancy between WEX and other exchanges, many traders may be tempted to profit from this apparently-golden arbitrage opportunity. Nevertheless, several industry veterans have warned that if an arbitrage opportunity looks too good to be true, it probably is.
“You should ask yourselves why is there this ‘too good to be true’ arbitrage opportunity and avoid in case,” Altana Digital Currency Fund CIO Alistair Milne wrote on Twitter. “This is what saved me from Mt. Gox.”
Notably, this isn’t the first time that this particular trading platform has come under scrutiny. Though now under new ownership and management, WEX — as CCN reported — is a rebranded version of now-defunct cryptocurrency exchange BTC-e, which was shut down in connection with an international investigation into a multi-billion dollar bitcoin money laundering operation.
As of writing, WEX has a daily trading volume of $35 million, which makes it the 35th-largest cryptocurrency trading platform. The exchange did not immediately respond to a request for comment.
Litecoin price analysis: Long term – Falling wedge breakout; Short term – barrier
- Long term breakout appears, confirmations pending.
- Short term provides resistance.
Litecoin bulls have a typical task in hand – to take momentum in their hands from the long term falling wedge breakout and cross past the short term resistance staring on their faces – not easy when the rally looks a bit tiresome already.
LTC/USD is up 2 percent on day at $61.85, just around the high of the day and exactly around the resistance descending trendline on the 480-minute chart which would require a lot of push and momentum to cross, just as the RSI nears oversold zone.
This is occuring even as prices have given a falling wedge breakout on the daily chart just two days ago, but still needs some more confirmation – needs to cross past the resistance of $68-70 zone.
LTC/USD daily chart:
LTC/USD 480-minute chart:
Ripple price analysis: Short term well supported to take the second biggest crypto tag
- Continues to stay up in the short term.
- Just shy to be the second biggest crypto.
Ripple, the cryptocurrecy which has been fighting with Ethereum for the slot of second biggest crypto by market capitalisation, still has some room to take the crown from ETH, as the prices remain well bid in the immediate term.
XRP/USD is up more than 2 percent on day at $0.587, trading in more than 5 percent range for the day enthused by last week’s momentum which drove prices up by more than 192 percent before it cooled. On the 15-minute chart, price of XRP is well supported by an ascending trendline, helping it stay up.
Given the momentum, XRP can still close the gap with ETH in terms of market capitlisation. Ripple’s market cap currently stands at $23.31 billion, just about a billion dollar shy of ETH’s $23.39 billion, according to data from coinmarketcap.com.
XRP/USD 15-minute chart:
Weiss Ratings Boasts Ripple’s XRP Token Is The Only Crypto With Clear Use
Earlier this week Weiss Ratings declared in support of Ripple’s XRP despite the condemnation the cryptocurrency has been receiving recently.
Weiss said they are seeing series of hostilities against the cryptocurrency, however, Weiss said it’s wondering why, since Ripple has a clear use in the crypto world when compared to other cryptocurrencies without use cases but with shady motives.
They went on to praise XRP for trying its best to get rid of middlemen involved in interbank transactions. Later, the rating agency, which has provided market research and analysis for consumers and businesses for more than four decades, says four coins, in particular, are “absolute steals.”