Regulators Investigate AVAIL Price Manipulation on Bithumb
South Korean regulators are currently investigating suspicious price fluctuations of the altcoin AVAIL on the Bithumb exchange, citing concerns of potential price manipulation. This investigation marks the first instance where regulators are leveraging the powers granted to them under the Virtual Asset User Protection Act, which became effective on July 18.
AVAIL Price Spike Raises Red Flags
Authorities are particularly focused on the sudden surge in AVAIL prices on July 23-24, when the coin's value skyrocketed by a staggering 1383% within a mere 15 minutes. This unusual price movement has raised eyebrows and prompted regulators to launch a comprehensive probe into the matter.
Market Anomaly Detected on Bithumb
The investigation revealed that an unidentified investor, referred to as "A," initiated a flurry of AVAIL transactions on the Bithumb exchange, leading to the unprecedented price surge. Prices surged from $0.17 per coin to around $2.56 in just 15 minutes before plummeting back down to $0.21 the following day.
Concerns Over Market Stability
Regulators are concerned about the stability of the market, noting that while AVAIL prices experienced drastic fluctuations on Bithumb, they remained relatively stable on other platforms, hovering around the $0.15 mark. This discrepancy has raised suspicions of potential market manipulation tactics being employed by certain actors.
Social Media Influence in Price Manipulation
The regulatory body believes that the individual known as "A" utilized social media platforms to solicit funds from investors, promising lucrative returns once his trading activities with AVAIL concluded. It is alleged that A managed to collect a significant amount of AVAIL coins through these efforts, eventually driving up the coin's value on Bithumb.
Collaborative Efforts with Law Enforcement
Investigators are working closely with law enforcement agencies to uncover the extent of the alleged price manipulation scheme and identify any individuals involved in the illicit activities. The investigation aims to uphold market integrity and ensure fair trading practices within the cryptocurrency sector.
Current State of AVAIL on Bithumb Exchange
As of the latest update on August 5, AVAIL was trading at approximately $0.09 on the Bithumb exchange, reflecting a significant drop from its previous inflated value. Regulators continue to monitor the situation closely to prevent further market distortions and protect investors from potential risks associated with price manipulation.
