Before I get into this article, let me make it clear that I have no idea what the source of this issue is, and I am not blaming nor implicating the Syscoin team. Until evidence otherwise is shown, they and the exchanges involved have 100% benefit of the doubt.
So, I’ll just get right into this.
I keep track of cryptocurrency prices in the sphere, and I noticed that Syscoin was experiencing some major gains today.
What the Hell?
If that’s your reaction, you’re correct to feel that way. And no, this does not appear to be a flaw in TradingView’s (the charting technology I used in the picture above) or Binance’s API either because the prices were exchange wide.
How I Found Out
I became aware of this shortly after the price action started up when I got an alert that it was up 96%+, and figured that it was a routine pump due to some sort of announcement or news that I was unaware of.
News Behind the Initial Spike (Theory)
Of course, as a trader and crypto observer in the space, I was curious was exactly had triggered this massive increase in price.
That’s when I had found this tweet by the team:
While this didn’t seem like something to warrant a 100% increase, this is crypto so I sort of waived it off for the time being.
Then, I received a message from a friend notifying me of some very strange activity going on in the buy/sell orders of the coin.
96 Bitcoin Buy Order
Yes, you read that title right. I was informed that ‘someone’ had bought ONE Syscoin for 96 Bitcoins.
At the time, I was unsure as to whether this was a glitch from the exchange, some nefarious activity, an idiot whale that misclicked or a hack of the blockchain/exchange itself.
Here is a tweet from Twitter user @AdamBouhmad verifying the event with a screenshot:
Twitter user @MaartenBron also made the same observation:
Poloniex Freezing Withdrawals/Deposits
Not long afterward, I began seeing tweets stating that Poloniex had frozen all withdrawals/deposits of Syscoin.
When this happened, I figured there may be something wrong with the chain (again, not blaming the Syscoin team or even saying that the chain was compromised at this point).
However, it was worth noting.
Shortly after that point, is when I came across the team’s acknowledgment of the issue.
Syscoin Team Acknowledgment of Issue
This tweet was issued by the team approximately 19 minutes from the time of me writing at this present moment.
So, this is ‘fresh off the presses’.
This verifies the Poloniex news that I was seeing from other users/members of the cryptocommunity on Twitter.
It’s worth noting some of the responses to this tweet which yield greater insight on what may be going on.
As of right now, I have no further information on what is going or what may have caused this.
When I do find out more information that sheds greater light on things, I’ll absolutely make sure to let everyone know.
Written at: 5:35 p.m. EST;GMT-4 on June 3rd, 2018
Disclaimer: I am neither invested into Syscoin nor any of its competitors and was not paid/commissioned by any party to write this article.