Dear users and fans of Cuprum Coin,
Our CEO Mario Urlić stayed up all night researching in detail what happened yesterday on August 28, and came to the following conclusion, which was confirmed a while ago by both exchanges.
Although at first, we thought that a hacker attack had taken place, considering that more than permissible transactions were passing through the explorer, in the end, it turned out to be incorrect.
Our CEO will explain what exactly happened.
So, in the attempt of arbitrage trading or even with some greater intention of disrupting the price of CUC by third parties, there was a total disruption of the MM system. Therefore, with large volumes on sale, partly due to attempted arbitrage trading, and partly caused by strong selling due to panic, the complete purchase disappeared, which up to that point was 10 times stronger on both exchanges than selling in the range of 20%.
Given that the details I received from the exchanges, the purchase and sale price of the same package, I believe that the arbitrage trading was more intended to destroy the placement of CUC on the market, and less to make money from it.
Why do I think so? After a strong sell-off in the price from 6 to 4 USDT, the price was additionally lowered on the Bitforex exchange with only 0.0500 CUC to 2 USDT, while the same on the WhiteBIT exchange was lowered to as much as 0.3330 USDT. How is that possible? There was simply no buying at all at that point and the third party succeeded in their plan by placing their buy order to be first. On the Bitforex exchange, there was a purchase below 2 USDT, that’s why they could not go lower, while on the WhiteBIT exchange there was no purchase at all.
With my quick reaction and the reaction of the MM team, the price was returned to the level before the attack, after which I asked the exchanges to stop trading until we get all the facts. The WhiteBIT exchange did that, and although we agreed on the same with the Bitforex exchange, they continued trading because of the stabilization of buying and price, as you can see today.
I must say again, my opinion is that this arbitrage trading was not intended to make a profit, but to destroy CUC and possible delisting. But, as you can see on the Bitforex exchange, they failed in their plan and I guarantee they will never succeed in that.
The investigation is still ongoing and all details are being investigated in cooperation with the exchanges, but I hope that we will soon open trading on the WhiteBIT exchange again.
We ask all our users for a little more patience, we had a really busy night and morning behind us.
Thank you for your understanding.
CUPRUM COIN, The Cryptocurrency of the Future
We are still waiting for the transaction details from the WhiteBIT exchange, we will post them here when we get them.
What Is Arbitrage? Arbitrage is trading that exploits the tiny differences in price between identical assets in two or more markets. The arbitrage trader buys the asset in one market and sells it in the other market at the same time in order to pocket the difference between the two prices.
Was that the intention here?