A single-page blog called “The Willy Report” (removed in the meantime) has recently denounced an alleged plot to manipulate the price of Bitcoin through the use of bots. According to the report, authored by a cryptocurrency trader who claims to have analyzed several trading logs starting from November 2013, a bot named Willy is the one to blame for last year’s wave of volatility.
The blog even blames the bot for the theft of millions of dollars from the now defunct exchange Mt. Gox. “Somewhere in December 2013, a number of traders including myself began noticing suspicious bot behavior on Mt. Gox”, the anonymous author starts by saying.
“Basically, a random number between 10 and 20 Bitcoin would be bought every 5-10 minutes, non-stop, for at least a month on end until the end of January”, he adds. The trader claims these transactions were facilitated from September 27th by the bot using several different accounts. The bot would purchase digital coins in the market, shutting down the account and opening a new one shortly after.
Fox Business reports that, in total, the author claims that $112 million were spent by this bot to buy close to 270,000 BTC, mostly during November 2013. However, the logs show the bot was still working until the end of January along with other both called Markus, which apparently bought and sold BTC around that same time period paying zero trading fees.
“If you were wondering how Bitcoin suddenly appreciated in value by a factor of 10 within the span of one month, well, this may be why. Not Chinese investors, not the Silkroad bust – these events may have contributed, but they may not have been main reason”, the report’s author says.
Then we all know what happened in December. Bitcoin’s price on Mt. Gox (and pretty much everywhere) skyrocketed. A brief ride towards the top until the real problems began. The author of the document does not excluse the chance that this was the work of outside hackers or even suspects close to Mt. Gox.
Still, the price of Bitcoin has been quite stable since the Mt. Gox debacle. After a brief downfall, the price of cryptocurrency has stabilized between the $450 and the $600. At the time of writing, the price was around $580.
The BlueCoin Phenomenon
BlueCoin is very serious about their chosen theme. Taking cue from the cultural antics of the Dogecoin community, the founders of BlueCoin have been trying to give it something of a personality. They announced an official BlueCoin afterparty to ...read more
Ripple Labs CTO Designs Smart Contracts
Stefan Thomas is one of the more talented and respected developers in the space. An old hat at this young technology, he has been making waves as the CTO of Ripple labs. In a recent effort he has set ...read more
American court stops Mt. Gox from auctioning Bitcoin domain
A United States court issued a temporary order to forbid the sale of the domain Bitcoins.com, which is still owned by the CEO of the defunct cryptocurrency exchange Mt. Gox. Mark Karpeles announced the auctioning of the domain two weeks ago. The injuction ...read more
New York-based Coinsetter evolves to “full US Bitcoin exchange”
Following the recent presentation of the first BitLicense draft, the Bitcoin-related set of rules that will regulate the crypto-economy in New York, the local exchange Coinsetter announced its evolution from beta stage to “full US Bitcoin exchange”. “Today, we’re pleased ...read more
Building a Bitcoin Economy: How to Close the Loop
This guide is a continuation of a previous article at http://bitcoinmagazine.com/13104/building-bitcoin-economy-stimulate-adoption/ If you or someone in the area has been preaching crypto for a while, you probably have a few nearby businesses accepting Bitcoin by now. This is an important first ...read more
#OffTheCouch: Award-winning Film Could Bring Bitcoin to 1,000 High Schools
The Corporation Film’s Crypto Challenge from Hello Cool World on Vimeo. For its 10th year anniversary, “The Corporation” is raising money for a re-release shown to 1,000 schools across North America. Their original fiat campaign closed at $30,000, and they’re ...read more