The bitcoin price has been mostly down on Wednesday, about one-half-of-one percent on the global market. However, on one Singapore-based exchange, the dominant cryptocurrency is rising by thousands of dollars and this is raising suspicion from critics who are already sending a warning.
The exchange in the subject is World Exchange Services, otherwise known as WEX, where the bitcoin price without any explanation soared as high as $8,999 during intraday trading. Notwithstanding a short decline, WEX’s BTC/USD market is presently trading steady at $8,000.
The rise extended to other WEX markets, as well as USDT/USD, which saw the controversial tether token rise as high as $1.30 regardless of been pegged to physical USD at a 1:1 ration.
It still remains uncertain on what is the reason for the bitcoin price to spike so high above the global average. Some observers, such as Kazonomics, have stated that it could be indicative of USD bankruptcy at the exchange or yet a complete exit fraud.
For others, however, it is possible from the illiquidity of WEX’s USD market, including the fact that the exchange charges huge fess foe fist withdrawals.
Because of the disagreement between WEX and other exchanges, several traders may be tempted to gain from this obvious once in a lifetime opportunity. But, many industry veterans have alerted that if such an opportunity looks too good to be true, then it should be taken that way.
“You should ask yourselves why is there this ‘too good to be true’ arbitrage opportunity and avoid in case,” Altana Digital Currency Fund CIO Alistair Milne wrote on Twitter. “This is what saved me from Mt. Gox.”