Kucoin Issues a Warning After Bitcoin Diamond Soars 40x and Then Crashes

Ever since the arrival of bitcoin cash, forked coins have been en vogue. While BCH has succeeded in gaining traction, not only on exchanges, but also in the real world, the stragglers have struggled. There is little evidence that the likes of bitcoin gold and bitcoin diamond are used for anything other than speculation. That speculation can see forked coins pumped to insane highs, as the events of the past 24 hours demonstrate.

Also read: How to Dollar-Cost Average Buy and Hodl Cryptocurrency Like A Boss

Diamond in the Rough

The bitcoin community is, appropriately, split when it comes to forks. Some see these airdropped coins, which are issued to existing bitcoin holders, as an egalitarian distribution strategy that creates an instant user base and active community. Others aren’t so sure, questioning the motives behind these projects and the lack of infrastructure support.

Kucoin Issues a Warning After Bitcoin Diamond Soars 40x and Then Crashes
The mother of all green candles.

Bitcoin diamond (BCD) was distributed at a BTC rate of 10:1 when it was released in late November. Within days, the forked coin had settled into a price bracket around the $30 mark, and with major exchanges such as Bitfinex and Bittrex refusing to touch it, diamond seemed destined to remain languishing in the doldrums. But in the trading stakes – or rather the pump and dump stakes – every coin has its day, and Saturday was BCD’s.

In a matter of minutes, the coin multiplied 40x on Kucoin, sending it over $800 and causing one of the largest green candles ever witnessed on an exchange. The movement prompted Kucoin to issue the following warning to its customers:

<img src="https://news.bitcoin.com/wp-content/uploads/2018/01/kucoin-bcd-1024×635.png" alt="Kucoin Issues Read More Here