Dogecoin Price Manipulation

BREAKING NEWS: A shibe whom goes by the name of [-wolong-] on Freenode has been observed manipulating the price of Dogecoin in real time

BACKSTORY:

Around 9 PM EST, an individual by the name of [-wolong-] on Freenode starts to make claims that he can pump up the price of Dogecoin. The channels these occurred in are #dogecoin and #dogecoin-market. Unsurprisingly, most people chalked him up to being a troll. It didn’t take long for the price of Doge to start rising. Within 30 minutes, the value of Doge had gone from 72 satoshi to 77 satoshi. As of 10:30 PM, he has made the promise to pump up the value to 80 satoshi by the end of the night.

This individual claims to be Chinese and also claims to own roughly five billion Dogecoin. At this point in time, there are only 31 Billion Dogecoin mined. This means he owns 16% of all the existing Dogecoin. Absolutely crazy.

Below you can find links to screenshots of the IRC conversation. You can click on the image to enlarge it.

NOTE: These images have been cropped. You can access the full screenshots at the following link

SO, HOW DOES THIS WORK?

Essentially, this user seems to be buying and selling to himself with massive amounts of Dogecoin. As a result, the volume skyrockets and people buy. Most people would not have the resources to do this but someone who owns 16% of all the existing Dogecoin certainly does.

The implications of this are quite scary. In a way, it even undermines the legitimacy of Dogecoin. But one has to remember this: Bitcoin is the same way. The majority of Bitcoins are held in few wallets. This individual claims to drive the price of Dogecoin up in a controlled manner and cash out his savings over an extended period of time.

COULD HE BE A TROLL?

It’s possible. One thing is apparent: he really can manipulate the price; however, we do not know his immediate intentions. There is a dump with every pump…or is there? Refer to the first screenshot for his rationale. It makes sense to me. The easiest way to actually verify this would be to have him post his transaction IDs so we can manually look it up on the Dogecoin block chain explorer. Unsurprisingly, he refused to submit the transaction IDs when I asked.

Another theory that has been circulating is he simply has access to the API feeds on BTER and Cryptsy which essentially gives him a few seconds to announce his next move and toy with his audience.

Let me know what you guys think. Remember to subscribe for instant notifications of any updates. I’ll be updating this story with new information as I get it.

UPDATE 1/19/2014

I’ve conducted some more research on the matter and many people speculate that this [-wolong-] individual is the same person as Phonetic, a dogecoin pool operator (ScryptPools) who stole over 200 million Dogecoin back in December. More information about this event can be found here

Many people also suspect that [-wolong-] is also the same person as “Fontas” or “Fontase”; an infamous cryptocurrency pump-n-dumper. More info can be found here and here.

SO WHAT DOES THIS MEAN?

Guys, the cryptocurrency market has some shady people in it. This person would make infinitely more money by screwing everyone over than cashing out at 3%-5% over the years. He has the community by the balls. He will pump this price up as far as he can and then dump. Will the pump be at 100? 110? 120? Who knows — why would he dump now when he has everyone convinced he is doing them a favor? Only time will tell.

  • fred22

    you are foolish if you genuinely believe this guy has YOUR best interests at heart

    • Derek

      “This person would make infinitely more money by screwing everyone over than cashing out at 3%-5% over the years.”

      How’s that? Did you fail math?

      • shibapro

        hes right. he’d pocket over 8 million USD if he managed to dump around 200 satoshi or more depending how high he can get the price. under what realistic circumstances do you see him extracting more than 8 million dollars?

        • len

          No one knows. Either one of you can be right…It all depends on the scale of Dogecoin success

  • Pingback: The Wolong Dogecoin Saga: Part 2 | DogeCoin News Site()

  • http://Libertasia.com Robert

    Comments / article a bit clueless as to how markets work. I believe that comes from the Marxist paradigm we are all educated with. It is not some reason to panic because someone owns a lot of shares, and it is in their interest to support price not destroy it. Fools.

  • Michael Fletcher

    How do you know that wolong might be Phonetic?