bullish

DeFi

when

Planet

<div class="intro-text">
 The<a style="color: #0000ff;" href="https://docs.dbnews.com/u/marketactivation.pdf" rel="noopener noreferrer nofollow"> recent criminal charges</a> against Aleksei Andriunin, CEO of market-making firm Gotbit, for allegedly orchestrating a $42 million crypto market manipulation scheme have sent ripples through the industry.&nbsp;
</div>
However, analysts believe that the eventual fallout could yield positive developments for the sector.&nbsp;
As previously<a style="color: #0000ff;" href="https://www.reuters.com/legal/us-charges-18-people-companies-cryptocurrency-fraud-2024-10-09/#:~:text=BOSTON%2C%20Oct%209%20(Reuters),trading%20in%20the%20crypto%20sector." rel="noopener noreferrer nofollow"> reported</a>, Andriunin and Gotbit are facing charges for inflating crypto trading volumes through “wash trading,” which created a false perception of active markets before dumping assets at inflated prices.&nbsp;
Despite the immediate panic this has caused, blockchain analytics firm Santiment highlights historical trends showing that fear-driven sell-offs often present buying opportunities for seasoned traders. They also warned that the broader crypto market may face short-term disruptions, especially for assets directly connected to the manipulation, like Robo Inu and Saitama.
Brian Quinlivan, director of marketing at Santiment,<a style="color: #0000ff;" href="https://insights.santiment.net/read/how-gotbit-got-bit-crowd-s-reaction-to-the-market-manipulation-scheme-will-be-key-8176?data=7yhsacryptohadsu6rnewsi2334hd" rel="noopener noreferrer nofollow"> noted in a recent blog post</a> that 
<blockquote>
 “markets often move contrary to the crowd’s expectations, particularly when fear-driven retail activity takes centre stage in the headlines.”
 “While the immediate reaction might be a small dip, as news of the manipulation scheme spreads, there’s a strong likelihood that the market could absorb the panic and swiftly reverse direction,” 
</blockquote>
Quinlivan noted.
He observed that panic selling can trigger a capitulation effect, where the worst-case scenario is already factored into prices. This situation may pave the way for a potential bullish reversal, creating opportunities for institutional investors and other market participants.
Quinlivan stressed that 
<blockquote>
 “periods of extreme fear, uncertainty, and doubt often align with market bottoms.”
</blockquote>
He suggested that eliminating Gotbit’s manipulative practices could create a 
<blockquote>
 “healthier, more transparent trading environment, ultimately boosting confidence in cryptocurrency markets.”
</blockquote>
RELATED: <a style="color: #0000ff;" href="https://defi-planet.com/2024/08/ex-bank-ceo-sentenced-to-24-years-for-47m-crypto-fraud-and-embezzlement-scheme/" rel="noopener noreferrer nofollow">Ex-Bank CEO Sentenced to 24 Years for $47M Crypto Fraud and Embezzlement Scheme</a>
Andriunin and Iuliia Milianovich<a style="color: #0000ff;" href="https://www.eu-startups.com/investor/gotbit/#:~:text=Gotbit%20was%20founded%20in%202017,branches%20of%20the%20crypto%20market." rel="noopener noreferrer nofollow"> founded</a> Gotbit in 2017 to give project founders greater market control through its platform-based solution. In July 2019, Andriunin openly<a style="color: #0000ff;" href="https://www.coindesk.com/markets/2019/07/18/for-15k-hell-fake-your-exchange-volume-youll-get-on-coinmarketcap/" rel="noopener noreferrer nofollow"> admitted</a> that the firm’s business practices “are not entirely ethical” and indicated plans to scale back its market-making operations due to difficulties with stringent customer identification requirements.
&nbsp;
If you want to read more news articles like this, visit <a style="color: #0000ff;" href="https://defi-planet.com/" rel="noopener noreferrer nofollow">DeFi Planet</a> and follow us on <a style="color: #0000ff;" href="https://twitter.com/PlanetDefi" rel="noopener noreferrer nofollow">Twitter</a>, <a style="color: #0000ff;" href="https://www.linkedin.com/company/defi-planet/" rel="noopener noreferrer nofollow">LinkedIn</a>, <a style="color: #0000ff;" href="https://www.facebook.com/DeFi-Planet-129907662611402" rel="noopener noreferrer nofollow">Facebook</a>, <a href="https://www.instagram.com/defi.planet/" rel="noopener noreferrer nofollow">Instagram</a>, and <a style="color: #0000ff;" href="https://coinmarketcap.com/community/profile/DeFiPlanet/" rel="noopener noreferrer nofollow">CoinMarketCap Community</a>.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
The post <a href="https://defi-planet.com/2024/10/gotbit-ceo-faces-charges-for-42m-crypto-scam-but-analysts-predict-market-rebound/" rel="noopener noreferrer nofollow">Gotbit CEO Faces Charges for $42M Crypto Scam, But Analysts Predict Market Rebound</a> appeared first on <a href="https://defi-planet.com" rel="noopener noreferrer nofollow">DeFi Planet</a>.

Gotbit CEO Faces Charges for $42M Crypto Scam, But Analysts Predict Market Rebound

DeFi Planet

Other articles published on Oct 10, 2024

Wallet Trackers Report This Smart Money Whale Is Selling Ethereum To Buy This Shiba Inu Killer

Thai SEC Proposes Rules Allowing Mutual and Private Funds to Invest in Digital Assets

CryptoPunk 1563 “Sells” for $56M: Real Deal or Flash Loan Stunt?

CARV Launches $CARV Token: Empowering Data Ownership And Value Generation in Gaming and AI

SuperEx丨Cosmoverse 2024 Conference in Dubai, October 21–27

Crypto.com Takes Legal Action Against SEC Over Wells Notice

Join our free newsletter for daily crypto updates!