Chinese Bitcoin Exchanges: Litecoin Price Volatility Driving Bitcoin Gains, Not Chinese Stock Market


Over the past several days, investors have witnessed sudden gains in volume and extreme price volatility for litecoin. In the last week litecoin has gained over 79 percent against bitcoin, 88 percent against the U.S. dollar and 90 percent against the euro and the yuan.

Much of the rapid increase in volume around litecoin trading was coming from Chinese markets, which is cause for concern at Huobi, a major digital currency exchange based in Beijing.

According to Arthur Hayes, the Cofounder and CTO of BitMEX, a litecoin ponzi scheme may have caused both bitcoin price and volume increases on Chinese digital currencies exchanges in the last few days.

Huobi CEO Leon Li told Bitcoin Magazine that the exchange had taken steps in the wake of the so-called “pump and dump” litecoin scheme.

“We did experience a tough Friday in Beijing because of LTC price volatility. Those promoters are potentially very dangerous, so we post risk warning on Huobi and will start risk revealing mechanism to all our users. An English notice was posted on BitVC.”

Li acknowledged there were also other factors at play, saying “The recent price volatility of litecoin is indeed one of the causes of the price increase of bitcoin. Since the LTC, BTC price is bouncing back from the lowest 1:200 to

Read more ... source: TheBitcoinNews