In a bizarre twist of events, Chinese firm Sunac China Holdings reportedly made a substantial profit by acquiring Bybit’s Notcoin (NT) token, despite the initial chaos surrounding its listing.
Listing Fiasco
On May 11, 2023, Singapore-based crypto exchange Bybit erroneously listed Notcoin as a tradable asset on its platform. The listing, which was not sanctioned by the Notcoin Foundation, triggered a wave of confusion among traders.
Within hours, Bybit suspended trading and delisted Notcoin, citing a technical error. However, the damage had already been done, with many traders reportedly losing significant funds due to the false price fluctuations.
Chinese Firm’s Profit
In the aftermath of the fiasco, Sunac China Holdings emerged as a surprise buyer of substantial amounts of Notcoin. The Chinese firm, which has no known involvement with the cryptocurrency industry, reportedly acquired approximately 10 million Notcoins at an average price of $0.05.
Shortly after its purchase, Notcoin’s price soared by more than 200%, reaching a high of $0.16. Sunac China Holdings is believed to have sold its Notcoin holdings at the peak, netting a profit of approximately $1 million.
Questions Raised
The incident has raised questions about the role of Chinese investors in the cryptocurrency market and the potential for market manipulation in the absence of proper regulatory oversight.
Experts have also expressed concerns that the Notcoin fiasco could damage the reputation of Bybit and undermine trust in the cryptocurrency industry as a whole.
Conclusion
The Bybit Notcoin listing debacle serves as a stark reminder of the potential risks associated with investing in unregulated cryptocurrencies. It also highlights the need for increased transparency and accountability in the cryptocurrency market to prevent similar incidents from occurring in the future.
Bybit has since apologized for the error and has taken steps to improve its internal controls. However, the long-term impact of the Notcoin fiasco on the exchange’s reputation remains to be seen.
Key Points
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