Bitcoin SV (BSV) Swaps Positions with Bitcoin Cash (BCH)
The price of BCH sank below $100 after news of a lawsuit accusing several prominent members of the ecosystem of creating a deliberate fraud scheme through the Bitcoin Cash network.
Bitcoin SV (BSV) marked a milestone - by trading higher than Bitcoin Cash (BCH), the officially accepted version. After the latest market sell-off, BCH prices suffered a steep decline, crashing to as low as $97. At the same time, BSV continued its anomalous gains, growing by 22% overnight to $106.19. The price flippening happened while a lawsuit was initiated against the Bitcoin Cash team and other members of the ecosystem.
The lawsuit was presented by claimant United American Corp., and lists among the defendants Bitmain, Inc., Roger Ver, as well as Amaury Sechet, lead developer at Bitcoin ABC. The nature of the complaint lists the defendants as being a part of a coordinated network aiming to achieve gains by manipulating BCH:
“This action involves a scheme by a tight-knit network of individuals and organizations to manipulate the cryptocurrency market for Bitcoin Cash, effectively hijacking the Bitcoin Cash network, centralizing the market, and violating all accepted standards, protocols and the course of conduct associated with Bitcoin since its inception.”
Some see the lawsuit as a necessary backlash against the attempt to control the direction of the Bitcoin Cash network. Others see it as a concerted effort to disrupt an already widely accepted coin.
During the hash wars, where two branched networks saw competitive mining, the Bitcoin SV version was seen as the loser. However, the project, backed by the Coingeek mining pool, keeps fighting for influence, and with a good representation on exchanges managed to line up among the top five of coins. BSV reached a temporary peak above $113.
What began as a hash war has also transformed into a trading war, as most exchanges opened wallets for the two assets. In theory, it is possible that the BSV side is selling their BCH balances, causing the price to go lower.
But the blows against the BCH ticker began earlier, and in the end, gaining the official ticker proved harmful. Exchanges gave the BCH ticker to the BCHABC market - which was a very young, speculative pre-fork pair. Immediately, the price of BCH was lowered by a technicality, losing 40%, and sinking to the $200 range. From then onward, the price drop continued as the bear market once again took its toll.
It is still too early to say which asset will survive, especially given the market sentiment and the expectation that assets would continue dropping to a much lower price range. However, the BSV version is the fork that managed to displace the original asset from which it originated - and aims to become one of the projects directing the future of digital assets. At the same time, the BCH asset still has its usability and support, and hence a fighting chance.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.