Fake news surrounding Bitcoin SV
What appeared to be a news alert coming from Coinbull, a Chinese media outlet, had the market rush into buying Bitcoin SV. The coin pumped from $120 to $200 after the alert claimed that Craig Wright, the founder of BSV, had transferred 50,000 BTC from one of Satoshi Nakamoto’s wallets to Binance, implying that he was the real creator of Bitcoin.
Dovey Wan, a founding partner at crypto VC firm Primitive Ventures, translated the viral fake news that tricked many Chinese investors.
Translation: “CSW transferred 50k BTC from the biggest BTC wallet to Binance, which confirmed he is the real Satoshi. As such CZ will re-list BSV and make an official apology on Twitter.”
Wan explained that the way the news was broadcasted is common among Chinese scammers who use the “breaking news image” and distribute it to the masses through WeChat, instead of sharing the news link directly. Since anyone can use the same image and alter it to communicate any message they want, it has become the easiest way to trick people into reacting to fake news.
Coinbull immediately reacted to the news by announcing:
“Recently, we have received feedback from users that certain people had maliciously sent out photoshopped Coinbull news alert to spread rumors about Binance and CSW which had bad consequences. We remind our users again not to trust any rumors and not to spread any rumors. Thank you for your support.”
careful, it's caused by fake new circulation in China. I got pinged 20 times today, clarifying it is fake. https://t.co/I8jIm4C2kk
— CZ Binance (@cz_binance) May 29, 2019
This is not the first time news surrounding Bitcoin SV has pumped its market valuation. Last week, the U.S. Copyright Office granted Craig S. Wright two copyrights—one for the whitepaper titled “Bitcoin: A Peer-to-Peer Electronic Cash System,” and the other for “Bitcoin,” the cryptocurrency’s original code.
Nonetheless, as Jerry Brito, the executive director at CoinCenter, pointed out anyone can register a copyright with the U.S. Copyright office, as it only involves filing a form and the agency does not investigate the validity of the claims filed.
Registering a copyright is just filing a form. The Copyright Office does not investigate the validity of the claim; they just register it. Unfortunately there is no official way to challenge a registration. If there are competing claims, the Office will just register all of them. https://t.co/YA70ALpG1Y
— Jerry Brito (@jerrybrito) May 21, 2019
Although the recent news surrounding Bitcoin SV have been fake or partially true, the market valuation of this cryptocurrency has been able to hold the substantial increases it has experienced.
On May 21, when the news came out about the two copyrights granted to Wright, BSV went up more than 100 percent in less than 12 hours. The cryptocurrency saw its price increase from $62 to a high of $135 to then stabilize around $100.
Now, the fake news alert has had BSV move another 60 percent. The cryptocurrency grazed highs of $197 just a few hours after the news dropped.
BSV’s market valuation has mainly been driven by speculation. There is no clear bullish or bearish trade that can be taken when analyzing this cryptocurrency. At the moment, it will be wiser to stay out of Bitcoin SV while the recent news clears out.