Binance Opens Deposits, Withdrawals for Bitcoin Diamond (BCD)

The hard fork, initially launched on Chinese niche markets, resulted in artificially inflated prices on Binance.

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Bitcoin Diamond (BCD) is about to open the Binance portfolio for deposits and withdrawals. Binance participated in the hard fork distributing the BCD balances but did not allow new deposits or withdrawals.

https://twitter.com/binance/status/1037227275308003329

The lock on the wallet meant that there was only limited availability of BCD for trading on Binance, based on the Bitcoin balance sheets (BTC). The exchange holds 168,791 BTCs in its hot portfolio, presumably allowing the same number of BCDs.

The news impacted the BCD market price, which stood at $ 1.33 at the close of September 4. He started climbing around 6:30 UTC on 5 September, reaching a maximum of $ 4.03 before retiring to $ 3.81. Trade volumes immediately rose from around $ 1.3 million to just under $ 70 million from Wednesday's 12.30 UTC. The reopening of the Binance portfolio should now standardize prices for BCD through exchanges.

The restriction on new deposits created artificial shortage, which led to a "trade anomaly". BCD prices on Binance range between $ 12.40 against BTC and $ 12.51 against ETH. These prices are excluded from CoinMarketCap statistics. The BCD trades on very thin volumes against ETH, at $ 87.794 and $ 745.775 against BTC.

BCD market prices peaked at $ 104.84 on November 25, 2017, when the asset traded on a niche stock exchange that allowed speculative trading immediately after the fork. Since then, the value has shrunk, reaching daily lows of $ 1.04 on August 21 and 22

Most of the BCD exchanges are concentrated on Gate.IO, but also here is a strong activity on OKEx. The currency showed irregular price movements, often doubling the price before crashing.

The Bitcoin Diamond network is somewhat similar to Bitcoin Gold (BTG) in the use of GPU mining for a change in the Bitcoin protocol. One of the reasons why BCD was blocked on Binance without deposits or withdrawals was the instability of the network. A low hashrate network could have created difficulties in transferring funds. But there was also the possibility of a 51% attack, like the one that hit Bitcoin Gold.

So far, Bitcoin Diamond has not suffered a 51% attack. However, initial attempts to send coins to trades have been held back by a slow network, requiring a lot of time for multiple confirmations.

In the case of Bitcoin Diamond, there are no precise statistics on the network's ishrates. It uses the X13 mining algorithm, for which there are already ASIC machines on sale and, in theory, an attacker could hijack the network.

Neither the author nor the publisher assume any responsibility for any investments, profits or losses made as a result of such information. Trading and investments in cryptocurrency are risky propositions and market participants are advised to always conduct in-depth research.

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