Bitcoin Diamond Jumps 180% on Binance Listing
Bitcoin hard fork Bitcoin Diamond (BCD) has been listed for deposits and withdrawals on cryptocurrency exchange giant Binance, resulting in a massively over-inflated price rise.
Early this morning, Bitcoin Diamond jumped 144% in the space of a few minutes and is currently up 180%, trading at $3.60 from $1.20 this morning. At one point it briefly broke the $4.00 mark.
Binance announced the listing on its Twitter feed and website just before 10:00 UCT, 05/09/2018.
— Binance (@binance) September 5, 2018
Binance originally facilitated the hard fork by distributed BCD balances but didn’t immediately allow for deposits or withdrawals. As a result, trading of BCD was very limited and based on Bitcoin (BTC) balances held in the Binance hot wallet, amounting to 168,791 BTC. This restriction caused artificial scarcity and caused the unnatural spike.
24-hour volume has increased drastically, shooting up from $1.3 million to a massive $70 million at time of print.
With the wallets now open to full functionality the price will presumably begin to equalize.
The price of Bitcoin Diamond has been reducing steadily throughout this year from its all-time high of $104.84 in November last year. It reached a low of $1.04 towards the end of last month but has begun to recover since.
BCD is well known for high volatility, with data from CoinMarketCap showing a number of extreme price rises and dips over the past few months. Most of BCD’s liquidity is focused on cryptocurrency exchanges OKEx and Gate.IO, although a large portion of that is now likely to move to Binance.