Considering the grey area which cryptocurrency market finds itself in a grey area, it is really not surprising how crypto price can be played by whales and institutions. In fact, there are those big players who can perform pump and dump cryptocurrencies in order to take advantage of price fluctuations.
One of the biggest whales in Tokyo is Nobuaki Kobayashi who is an attorney who happens to be the bankruptcy trustee of Mt. Gox, the Tokyo-based exchange that lost 850,000 bitcoins and declared bankruptcy. Kobayashi last month was able to see around $400 million worth of Bitcoin and Bitcoin Cash. He mentioned that the process began last September.
A Closer Look at George Soros
Apparently, billionaire George Soros had a change of heart when it comes to cryptocurrencies. According to a Bloomberg report, George Soros is already planning to invest in virtual currencies. Soros Fund Management investor Adam Fisher has reportedly already received approval for the move to go into cryptos however, there is still no authorization to make the investment.
In January, he was remembered to have called cryptocurrencies a bubble. Now, his family office is willing to invest in virtual currencies. To give you an idea about the size of his family’s asset, his family has a total wealth of $26 billion.
When speaking to the World Economic Forum in Davos, Soros mentioned that digital currencies can’t be considered as actual currencies because of its volatility. He mentioned that “as long as you have dictatorships on the rise you will have a different ending because the rulers in those countries will turn to Bitcoin to build a nest egg abroad”.
Doubting the Value
After making the comment that the cryptocurrency market is a bubble, Bitcoin has since fallen by 41 percent. There were investors who doubted the value of trading Bitcoin and other cryptocurrencies. For instance, you have ex-hedge fund manager Mike Novogratz who didn’t launch a crypto fund in December and shifted his efforts towards a merchant bank instead that is focused on cryptos.
Soros on Overstock.com
Soros has been indirectly involved in cryptocurrencies already. His firm already amassed a stake in Overstock.com during the fourth quarter of 2017 that made it the third-biggest shareholder of the company. It was in August 2017 when Overstock.com became the first retailer to accept digital currencies.
However, in March, Overstock.com announced the news that the Securities and Exchange Commission was investigating Overstock.com’s proposed ICO. And after this announcement, the shares dropped by 40%.
So is it really a bubble or is it an opportunity where you can earn a large amount of money? Considering how much cryptos lost their value since the end of December 2017, this could be the perfect opportunity to risk some money in the crypto market.
But now that Soros wants to participate in crypto trading, could this mean that the prices of cryptocurrencies are going to shoot back up in the coming months? Also, how much money is the billionaire willing to spend on the crypto market that he called a bubble?