What the hell happened last week?
If you had been on vacation last week and didn’t have access to the internet, you probably saved yourself some soiled adult diapers. It all started when Charlie Lee (creator of Lite coin) tweeted a rumor that China was going to ban bitcoin. He then came back on his comment mentioning he meant they were going to ban exchanges. Well, that started a wave of FUD (Fear Uncertainty and Doubt) and the price of bitcoin lost around 300$.
To make things worst China came out with a list of ICO’s they actually wanted to ban. They went as far as to ask all the money to be returned to the investors. Well, the news didn’t get received well and the price of bitcoin dropped another few hundred dollars. What China is actually wanting to do is keep their money in China. As they do. They want to limit the meddling of outside investors who can trade their Chinese Yuan against indexes like bitcoin and create their own regulatory system to protect their population from investing in somewhat ‘dodgy’ projects.
Lots of scams going on these days around ICO’s so this move could be seen in the long term as beneficial to the Chinese Fin-tech sector.
Talking about scams, the greatest hit of all this week actually came from one of the major U.S. Bank CEO, Jamie Dimon. As if being at the top of one of the greatest position of wealth wasn’t enough, he had to meddle with the crypto space. He claimed that anyone who traded Bitcoin was ‘stupid’ and that anyone in his department who did so would be fired. In the same sentence, he even admitted that his daughter had bought bitcoin. To pour gasoline on the fire he then called Bitcoin a fraud, which plummeted the price of Bitcoin down to the 3000$ levels. The very next day, huge orders of Bitcoin made the price jump back to almost 3800$ levels.
Turns out JP Morgan bought the dip and made a huge order alongside Morgan Stanley and profited in the billions from this order. I wonder who’s dumb and who is a fraud here?