Bitcoin hits $70,000 on controversial PulseChain

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Lucrative opportunities await in the more remote corners of the crypto market, as the price of Bitcoin wrapped on Richard Hearts’ new PulseChain hit an all-time high of $70,000 last Wednesday.

The founder tweeted the new all-time high for Bitcoin (BTC) or Shrouded Bitcoin (wBTC) after the asset rose from $27,000 to $70,000.

Bitcoin Price Rollercoaster

The chart below shows wBTC’s parabolic rise from $27,000 to $70,000 in about 20 minutes.

wBTC Volatility | Source: Twitter

The price stayed at $70,000 for 10 minutes before dropping dramatically to recover previous levels.

Snapshot on DEX Screener when WBTC rose to $70,000 – Source: Trading View

Bitcoin’s shrouded volatility exposed PulseChains’ weaknesses rather than its strengths after volume surged for no reason as price rose.

Activity on the platform was previously almost non-existent, with one crypto user saying it took a capital injection of less than $40,000 to raise the price of wrapped bitcoins, betraying the platforms’ low popularity and usage. -forms.

The pronounced volatility of wBTC in long and short trades is also characteristic of a classic pump and dump pattern. The low capital required to move the markets suggests that even non-whales could manipulate the price of Bitcoins on the network.

The decline in Bitcoin liquidity after the collapse of Alameda Research allowed whales to move markets with lower trading volumes.

Since its launch, PulseChain has not lived up to the expectations of its founders. The project’s native HEX token fell over 50% and gained minimal buy-in from DeFi participants.

As a result, users may also wonder why Heart would show the surge in wBTC price.

Community accuses HEX and Heart of Pyramid Scheme

The PulseChains HEX website has launched a dedicated scam section following complaints from the crypto community. Heart has also been publicly accused on several occasions.

Skeptics point to the promise of tangible rewards for holding crypto as a major red flag. HEX users can stake crypto to earn 40% annual rewards.

Other factors that cast doubt on the credibility of projects include:

Founder Richard Heart (whose real name is Richard James Chueler), was previously accused of being involved in a spam-related scheme in 2002 that went to trial. Chueler openly admitted that PulseChain uses tactics a scam could use, including referral bonuses and get-rich-quick schemes. Despite these questionable elements, the founder insists that PulseChain is legit. HEX has minimal use cases. The HEX staking mechanism represents a Ponzi scheme. The project discourages investors from withdrawing money by promising high long-term returns and early withdrawal penalties.

CoinFabrik and ChainSecurity code audits confirmed that HEX smart contracts are bug free.

For the latest Bitcoin (BTC) analysis from BeInCryptos, click here.

Disclaimer

In accordance with the guidelines of the Trust Project, BeInCrypto is committed to providing impartial and transparent reports. This news article aims to provide accurate and timely information. However, readers are urged to independently fact-check and seek professional advice before making any decisions based on this content.

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