Beaxy, a newly-launched cryptocurrency exchange has put a stop in trading after users voluntarily crashed the altcoin, Ripple (XRP) price against BTC.
Beginning on the 12th of August, some social media messages and a blog post mentioned that Beaxy encountered an unexpected increase in volumes of XRP trading, with a large sell-off lessening XRP/BTC by 40% of its value on different exchanges.
The blog post says, “As a result and precaution, we are temporarily halting all trading activity and withdrawals across the exchange as we investigate.”
Beaxy was launched in June 2019, having already endured challenges after a failed attempt of hacking its infrastructure to obtain data and funds.
Beaxy will get assistance from KYC in tracking those who are responsible.
The users accountable for the crash of the XRP can be known with the help of the KYC procedures. They said they will take action, although they didn’t exactly say if the people responsible will be charged with legal offenses.
One tweet reads, “In addition, KYC has allowed us to identify participants in this incident & pursue action against them. We feel confident we can reclaim misplaced funds. To impacted users, thanks for your support!” They also said that the suspected transactions will be invalidated.
Ripple, the company behind XRP, has not expressed any comments yet regarding the events.
The disaster happened just one week after another big-time exchange, Binance’s publicity nightmare when rumors arose that they had lost control of their KYC data.
The value of Ripple within the last month was seen at the lowest on July 16th at 5:30 pm UTC, trading at $0.29116. The price then increased by about 16% on July 20th at 10:00 pm UTC, trading at $0.33986. The price dropped again on July 28th by about 11% at 10:00 pm UTC, value trading at $0.29984. XRP had increased again by about 9% on August 5th at 11:00 am UTC with a value of $0.32797. Then it had decreased again on August 9th at 5:00 pm UTC by around 11%.
XRP/USD had a bearish Monday, where the price decreased from $0.303 to $0.300. Currently, the bulls are fighting to stay above the $0.300-level. The hourly price chart displays that the value was reduced from $0.303 to $0.299. After its sudden fall from the $0.300-level, they were able to pull back in and got the price back up to $0.301, before they corrected it to $0.300.
The 200-day simple moving average or SMA 200 has crossed over the SMA 50 line, mapping the “death cross” sign. This sign implies that the price may plunge further. The daily chart was trending in a channel formation before the price had a bearish breakout. The 20-day Bollinger jaw is growing, which presents increasing market volatility. The moving average convergence/divergence or MACD indicator shows a decreasing bullish pattern. The relative strength index or RSI indicator is at around 42.50.
Seymour Nunez is a contributing writer for Cash Tech News who enjoys writing about the intersection of blockchain technology and everyday life.
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