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Quick chat with Jenny Zheng, Cofounder of Blockcast.cc on the recent events.
Jenny Zheng has over 9 years of business experiences in global markets. She has worked for a Fortune 500 company and now the 2nd largest shareholder and board member of a Beijing based media company ea3w.com.
She is also the co-founder and media relation director of leading Singapore based blockchain media Blockcast.cc, she has given keynote speeches and masterclasses in South Korea and China. She speaks perfect English/Chinese/Korean and has a broad international perspective. Her blockchain knowledge is also published in international media channels such as NBC, ABC, CBS, Market Watch and Google news.
- We’ve seen ‘coordinated buying attacks’ target XRP and dogecoin recently, largely under the influence of the GameStop/wallstreetbets saga. Do you think that these pumps are different from previous pumps (i.e. pre-GameStop), or they do represent something different (i.e. different methods, aims, participants)?
As for XRP，it was the same old game we see all the time in the crypto space. They use news hype to draw retail investors. The retail investors think that they are fighting against SEC but they are used by the market.
There is a buzzword on China’s crypto space for this- “jiucai” or leeks. “All these retail investors are typical leeks that are picked in the crypto market. It’s a self-deprecating term implying they are being played for suckers, just faceless vegetables harvested by the house.
But for DOGE is different. DOGE is not pumped by Reddit Wall Street Bets. It is still pumped by the crypto community. If you know DOGE well, whenever there is good news, and in the bull market, the price goes up. DOGE is one of the most decentralised coins right now. FYI. In early Jan 2021, DOGE has already doubled its price. Last bull market, DOGE was upped by 100X.
- Do you think such coordinated pumps are sustainable? Could they help attract more retail investors to crypto? Or might latecomers to pumps be turned off by losses?
Coordinated and successful pumps seem to be something “amazing” in the traditional stock market. But in the crypto space, this is nothing new. Started in 2017, the coordinated pumps by the community and KOLs have made many 1000X coins overnight.
This is not sustainable at all. Human beings are all selfish and the expected return of investment is different. In the end, the one who sells the fastest win this game. This has been proven in 2017/ 2018 ICO period. Also if you look at Gamestop and AMC now, it is fallen by more than 70%. This proves again that this is not sustainable.
- In your view, could such pumps incite some kind of backlash from regulators? Might they fuel the notion that the crypto market is ‘nothing but’ manipulation?
Ironically, the stock market looks more like the crypto market while the crypto market is trying to be like the stock market. Crypto market will mature and be more regulated. Crypto market will be widely accepted by the masses. The stock market was very manipulative in their early days, crypto will walk the same path. “History doesn’t repeat itself but it rhymes.”
“So bear with this for a while, we will see changes very soon. I know the regulators are on top of this.”
Interviewer: Joann Park
Date: 6 February 2021