Crypto investors oppose price controls

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Crypto investors oppose price controls

Sanctions required for manipulators

Representations of Bitcoin, Ethereum, DogeCoin, Ripple, and Litecoin cryptocurrencies are placed on a PC motherboard in this illustration. REUTERS

The crypto community does not agree with the Securities and Exchange Commission (SEC) proposal to adopt ceiling and floor price rules to reduce price volatility because it is against a price mechanism, but says that ‘it supports the application by the regulator of sanctions for price manipulators.

The community also agrees that local digital asset exchanges should take timely warning action and implement market surveillance of cryptocurrency manipulation, said Suppakrit Boonsat, president of the Thai Digital Asset Association. .

The sharp rise and fall of three Thai cryptocurrencies – Bitkub Coin (KUB), JFIN Coin (JFIN) and SIX Coin (SIX) – on November 30th caused serious damage to inexperienced investors.

KUB peaked at 500 baht per coin before falling by around 60-70% to 150 baht on November 30 around 8-9 a.m., while JFIN peaked at 248 baht before falling 60-70% to around 19 baht around the same time.

The community speculated that a group of people may have manipulated coin prices to move up, causing investors to fear they would run out of buying, before “driving down” the price with a technique known as ” pump and dump “, causing heavy losses to the inexperienced. traders.

Mr Suppakrit said that to prevent price manipulation, coin issuers should list their coins on multiple exchanges to provide higher liquidity and arbitrage chances, which would make it more difficult for coin manipulators to pump and dump money. price. He said this event was a good lesson for new traders to be more careful and diversify their investments.

“We don’t think that a ceiling price and a floor price will be imposed because we don’t want to disrupt the market mechanism, but we want the SEC to punish those involved in price manipulation,” Suppakrit said. .

He said digital exchanges should be able to identify manipulators and bring evidence to the SEC, alerting investors and making digital investments more fair and sustainable.

Sanjay Popli, co-founder of Cryptomind, agreed that coin issuers should list the coins on multiple exchanges to increase the liquidity of the exchanges. Digital exchanges must have an internal market surveillance system to detect any manipulation, Sanjay said.

A source from Bitkub who requested anonymity said the exchange would introduce a system to alert investors when crypto prices change by more than 30% in a 24-hour period, using the symbol P30. The source said the company is aware of the risks to investors and that there will be oversight to ensure that trading conditions on the platform are fair and orderly.

“The company already has a market surveillance team,” the source said.

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