Bitcoin Prices Surges Close to $9,000 on WEX Crypto Exchange
While the bitcoin price is trading below the $6,400 levels in most of the cryptocurrency exchanges, the digital coin price surged to hit close to $9,000 in a Singapore-based exchange. Undoubtedly, this has raised a lot of concerns among not only traders but also experts on the real reason behind it. For their part, critics have also issued an alarm bell on the spurt in prices of the virtual asset in World Exchange Services, which is called as WEX.
Above Global Average
During the intraday trading, the bitcoin price has reached $8.999 while the price of the digital coin is less than $6,400 in rest of the global cryptocurrency exchanges. Later, the price steadied around $8,000 levels. This meant a full $1,600 more than the averages seen in the international digital currency market, ccn.com reported. This has also cast its shadow on other WEX markets such as USDT versus the American Greenback. As a result, the controversial tether virtual asset surged $1.30 through the physical ratio of US dollar with that of the crypto pegging at 1:1. These developments have naturally created worries as to what is really happening in the exchange.
Until now, there was no clarity as to what was the reason behind the sudden spurt in price in comparison with global averages. A bitcoin trader, Kazonomics, and other observers think that it could be a warning of the insolvency of the American Greenback at the WEX. Alternatively, they are also not ruling out an outright exit scam. At the same time, there are some who are wondering whether it is party time as the bitcoin price was steady around $8,000 levels.
There are other reasons that are doing the rounds. For instance, some experts think that the price surge could be due to the illiquidity of the exchange’s American currency markets. Aside from that, the exchange is also charging heavy fees in case of traders resort to fiat withdrawals. In any case, the price variation between the Singapore-based exchange and other exchanges could tempt several traders to lock profit to take advantage of the position.
Several veterans from the industry have also issued a warning that if the theory of an arbitrage opportunity is there, then it is the right time to make a profit. Significantly, the exchange has not come out with any explanation on the spurt in bitcoin price. The WEX has also not indicated any scam until now.
Not the First Time
In a tweet, Atlanta Digital Currency Fund CIO, Alistair Milne, said, “You should ask yourselves why is there this ‘too good to be true’ arbitrage opportunity and avoid in case. This is what saved me from Mt. Gox.” For the exchange, this is not the first time that its platform came under the scanner.
Interestingly, the exchange is now managed by new ownership and has rebranded it from the former name of BTC-e. The former exchange had to down the shutters due to an investigation on money laundering operation involving multi-billion dollar bitcoin. On a daily basis, the WEX is witnessing a volume of about $35 million, and that makes it as the 35th biggest platform for cryptocurrency exchange.