Profitable opportunities are always “lurking” somewhere in the cryptocurrency market. Accordingly, the price of wrapped Bitcoin on Richard Heart’s PulseChain hit a new ATH of $70,000 last Wednesday.
The PulseChain founder tweeted about Bitcoin (BTC) or wrapped Bitcoin (wBTC) setting a new ATH after it skyrocketed from $27,000 to $70,000.
BITCOIN PRICE “UP THE ELEPHANT DOWN THE DOG”
The chart below shows the parabolic rise of wBTC from $27,000 to $70,000 in about 20 minutes.
BTC price held at $70,000 for 10 minutes before “free falling” back to previous levels.
This unusual volatility of wrapped Bitcoin exposed PulseChain’s weaknesses rather than strengths. Accordingly, the price of BTC has spiked without any valid reason.
Activity on the platform was previously relatively bleak. One crypto user claimed that PulseChain had to inject around $40,000 in capital to increase the price of wrapped Bitcoin, and this doesn’t match the platform’s popularity and low usage.
The marked volatility of wBTC in long and short positions is also characteristic of the classic Pump & Dump pattern. The use of a small amount of money was able to manipulate the market showing that even non-whales can manipulate the price of Bitcoin on this network.
Lower Bitcoin liquidity following the Alameda Research crash allowed whales to manipulate the market with lower trading volumes.
Since its launch, PulseChain has failed to live up to its founder’s expectations. The project’s native token HEX has dropped by more than 50% with very little purchase from DeFi participants.
Accordingly, users will probably wonder why Heart revealed the sudden increase in the price of wBTC.
THE COMMUNITY AGAINST HEX AND HEART BEHIND A PYRAMID SCAM PROJECT
PulseChain’s HEX website had to create a section to explain the scam allegations following complaints from the crypto community. Heart has also been publicly accused many times.
According to skeptics, the project’s promise of tangible rewards for holding HEX is a big “red flag”. HEX users can staking crypto to earn 40% annual rewards.
Other factors that cause a project’s credibility to drop include:
Founder Richard Heart (real name Richard James Chueler), was previously accused of participating in a spam-related scheme in 2002 and has been brought to trial.
Chueler has publicly admitted that PulseChain uses “tacticals a scam could use,” including referral bonuses and get-rich-quick schemes. Despite these dubious factors, the founder insists PulseChain is trustworthy.
HEX has very few use cases.
The HEX staking mechanism is similar to the Ponzi scheme. The project does not expect investors to withdraw with promises of large profits in the long term and penalties for early withdrawal.
Code auditors CoinFabrik and ChainSecurity have confirmed that HEX’s smart contracts are bug-free.