Disclaimer: Does this look like financial advice? You are right. It isn’t. Treat it so.
“Do Your Own Research” (DYOR) is not a fad but an important element of the cryptoverse. Do keep that in mind.
Crypto Conspiracy
While it may be easy to put this in the category of conspiracy theories, think about it for a moment.
One
Action: Trump increases tariffs on China by 100% over and above the existing ones. So, in effect, crippling trade between the countries.
Effect: Stock Markets plunge. Crypto Markets Plunge. It appears straightforward.
But: Trump has done this before. Not just to China, but also India and Brazil. All these economies rank in the top 20 of the World.
That's not all.
Two
Action: Binance sees an account opening with roughly 700 million USD just before Trump's announcement. It shorts BTC (which is just 200 million) of the lot, and Trump's announcement follows.
Effect: Crypto crash witnessed on the exchange. $19 Billion Liquidation witnessed across the board (not just Binance)
But: The situation could have been better if the Binance exchange had not frozen. No buttons were working, and there was no way to manually attempt closing a position. So, force closure was the norm – but not by choice.
And There's More.
- Binance offers 253 million dollars worth of settlement for traders and investors who got caught in the liquidation cycle. That's just roughly 30% of that 700 million dollar alleged wallet, but to be spread over most (if not all) traders. Not only that, it is just 1% of the global crypto liquidations.
The question is, what if this was on purpose?
It seems to be an isolated incident between situation 1 and 2 (from above), but it is difficult to digest, especially when an unknown wallet with 700 million dollars just shows up during a bull run and shorts instead of going long.
Trump has enough and more interest in the crypto space, and this term he is hellbent on making more money for his family than doing anything for America - case in point, Qatar's 400 million dollar jet. I am not an American, so this part does not bother me. But I am a crypto player, and his eccentricities affect me for sure.
What if situations 1 and 2 were well coordinated? Now, now.. we are entering the realm of conspiracy theory. But just imagine - if that's the case, it explains Binance freezing the entire exchange, and it is left to our imagination to figure out to whom that 700 million dollar wallet belonged.
If Binance’s exchange was frozen, then what if we got a wrong estimate for the liquidations? What if it is far more than the $19 billion? Not that the impact on reality is going to change – the affected remain affected.
If any of this is true, then this is no less than an FTX or LUNC moment.
What do you think?
Image Courtesy: From X Platform