Luno CEO: Bitcoin is Dominated by Speculation, Over 90% of Usage is Driven for Investing

Most people know that there is some degree of manipulation in the crypto market. The major question is generally: how much of it there is? Marcus Swanepoel, the CEO of Luno, believes that it is a lot, way more than actual trading, in fact.

According to his recent interview with CNBC, only 10% of all the Bitcoin holders actually use it for “real” transactions. 90% of the users are actually engaged in speculation instead of healthier market activities. They don’t care about BTC and only want to buy it when prices are low and sell it when they’re high.

To him, 90% of the people in the crypto market are speculators trying to get some money by trading the asset. Only 10% of BTC’s user base would have a real long-term view of the asset.

Swanepoel Is Not Completely Against Cryptos

Despite the bold claims that most crypto trading is actually speculation, Swanepoel seems to acknowledge that the market definitely has some potential as an investment. According to him, it really makes sense for people to invest in cryptos, but they need to measure the risk well.

If they only invest a small portion of their assets, they can reap huge rewards later. If the prices go down, at least they have not lost too much money.

His views are shared by many people in the market such as Anthony Pompliano, the CEO of Morgan Creek Digital, and Nelson Minier from Kraken. They believe that while there is still some discussion on whether Bitcoin is really a “safe haven” asset or not, it does not make any sense to have zero exposure to it, as investing at least 1 or 2% of your money on it is a great idea.

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Author: Hank Klinger

Planned Sell-Off Causes XRP Prices To Crash By 40% On Beaxy Exchange

The crypto market is prone to manipulation. If you don’t believe it, you can just check the many examples that can be easily found. The latest one was a coordinated sell-off of Ripple’s XRP tokens on the Beaxy Exchange.

This new crypto exchange platform was just launched, but it had to suspend its activities for being targeted by manipulators. According to the reports, soon after the launch, the exchange suffering a massive XRP dump with a lot of people selling the asset at the same time.

In order to deal with this obvious market manipulation situation, Beaxy had no choice but to shut down the platform for a few days. It has been a rough start for the exchange, which was launched back in June. So far, technical issues, manipulation and the lack of infrastructure are getting in the way of the company.

Action was taken very quickly, as the abnormal volumes were pretty easy to spot. The prices tanked pretty fast and now all token wallets are frozen, so the manipulators are unable to pull their funds away from the exchange, which prevented more issues from happening.

Fortunately, the exchange will be able to identify the manipulators soon. The company had a Know Your Customer (KYC) system ready since its launch, so the people who caused the crash can be found. However, the exchange did not determine whether it will take action against the scammers or not.

Ripple, the responsible for XRP tokens, has not commented on the situation at the moment.

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Author: Bitcoin Exchange Guide News Team