thecoinrepublic.com
- 1 BTC’s price surged from $27,000 to $70,000 on the ChainPulse platform within 20 minutes
- 2 The Bitcoin’s price surging to ATH on the platform was a classic case of pump and dump.
Last Wednesday, the price of Bitcoin hit an ATH of $70,000 on Richard Heart’s new PulseChain.
Bitcoin Hits ATH of $70,000
The founder of the chain tweets that Bitcoin or wrapped Bitcoin (wBTC) reached its new ATH after the assets spiked from $27,000 levels to $70,000 levels.
The chart will show how wBTC rose from the $27,000 level to reach its ATH at $70,000 level in roughly 20 minutes.
The volatility of wrapped Bitcoin proved costly as it revealed the weaknesses of the PulseChain when the volume spiked without any reason during the price surge.
The activity on the platform was almost negligible and a crypto user claimed that with just a capital of $40,000 in the trade the wrapped Bitcoin’s price has been betrayed.
wBTC’s range volatility that happened on the network is a classic case of pump and dump. The volatility that occurred last Wednesday suggests that even non-whales can manipulate the price of Bitcoin on such platforms where the volume is less.
The lower liquidity of the platform after the fall of Alameda’s research has allowed whales and non-whales to move markets drastically with low trading volumes.
Pulse Chain
Ever since the launch of PulseChain it has been quite disappointing for its founder and hasn’t met his expectations. Native token HEX has fallen more than 50% and minimal buy-in was done by DeFi participants.
A lot of users may wonder why Heart has publicly flaunted the volatility of wBTC’s price. The thing is Pulse Chain’s HEX website has launched a section specifically related to scams for the crypto community since Heart has been accused several times.
A lot of critics have come out and said that the promise of giving rewards for holding crypto is a big red flag. HEX users can earn up to 40% annual rewards on their crypto holdings.
Questions Raised Regarding the Credibility of the Project
Founder of the chain, Richard Heart was involved in a trial related to a spam-related scheme in 2002. The founder has added to the fact that the PulseChain uses such tactics that a scam would use which include get-rich-quick schemes, and referral bonuses. Despite the chain having such questionable features, Heart vouches that PulseChain is legitimate.
One more questionable element of the chain is that it has very minimal use cases which makes it less popular among DeFi enthusiasts and attracts less activity. Additionally to this, the HEX staking mechanism replicates a Ponzi scheme.
The project cheats investors from the withdrawal of their funds by promising high long-term returns and early withdrawal penalties.
Although despite accusations their auditing which is done by CoinFabrik and Chainsecurity has confirmed that HEX smart contracts contain no bugs.