As a seasoned researcher with over a decade of experience in the turbulent world of finance and cryptocurrencies, I have witnessed numerous market tremors that sent shockwaves through the financial sphere, only to be followed by unexpected recoveries. The recent charges against Gotbit’s CEO, Aleksei Andriunin, for a multi-million dollar crypto market manipulation scheme is no exception.
According to Santiment’s predictions, the potential multi-million dollar charges for Gotbit might provoke uncertainty among investors (FUD), but if this leads to panic selling, it could pave the way for a quick market rebound.
The accusation of a $42 million crypto market manipulation against Aleksei Andriunin, CEO of market-making firm Gotbit, due to recent criminal charges, has caused a significant stir in the industry. However, some analysts believe that this incident could ultimately prove beneficial for the cryptocurrency space.
Previously mentioned in crypto.news, Andriunin and Gotbit are under investigation for manipulating cryptocurrency trading volumes using “wash trading,” a tactic that gives the appearance of bustling markets only to later sell off assets at inflated prices. However, despite initial market turmoil, blockchain analyst Santiment suggests looking back at past trends, which indicate that panic-fueled selling sprees can provide investment chances for seasoned traders.
According to Brian Quinlivan, the marketing director at Santiment, it’s often the case that markets will go against what people generally expect, particularly when panic-fueled trading gets a lot of attention in the news.
Initially, it seems like there could be a temporary drop when people learn about the manipulation plan. However, it’s quite possible that the market will handle the fear and quickly change its course in the opposite direction.
Brian Quinlivan
He noted that panic selling may lead to a capitulation effect, where the worst-case scenario is already priced in, setting the stage for a potential bullish reversal, creating opportunities for institutional investors and market participants.
Santiment issues a caution about potential short-term turbulence within the broader crypto sector, particularly for projects linked to manipulation such as Robo Inu and Saitama. On the other hand, Quinlivan underlines that periods of excessive fear, uncertainty, and doubt (FUD) frequently align with market lows. The elimination of Gotbit’s manipulative trading practices could pave the way for a “more open, honest trading environment,” boosting investor trust in the crypto markets.
Established in 2017, Gotbit – a company co-founded by Andryunin and Julia Milianovich – has been offering a platform-centric solution primarily designed to empower project creators with greater control over their markets. However, as admitted by Andryunin himself in July 2019, the company’s business practices have raised some ethical concerns. Consequently, he announced plans to shut down Gotbit’s market-making operations due to difficulties in meeting stringent customer identification requirements.
On their website, Gotbit has featured several well-known crypto exchanges and venture firms such as Binance, OKX, Crypto.com, a16z, Gate.io, and Bybit in their “associates” or “allies” section. Yet, it’s uncertain whether these companies maintain any official partnerships with Gotbit.
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2024-10-10 11:42