Although the cryptocurrency market in general has been slumping, the Bytecoin currency had seen a sizeable rise in its value. The growth in Bytecoin came as it became available on more exchanges.
But soon after that, the currency started to lose its value. This came as the currency struggled with Binance transactions. This has led Bytecoin to get back to somewhere around its original value.
The currency, which uses an open source code, is made to support anonymous cash settlement transactions. The currency has been popular among those who are looking for a fully private solution for managing transactions. But even with this, the currency is not doing much to try and maintain a consistent rise in its value.Advertisement
The current was trading at 0.7 cents and had a market cap of about $1.3 billion. But on Thursday, the currency started to get an uptick in trading. The currency got to 1.4 cents with a $2.5 billion market cap. But since then, the currency has dropped down, trading at just a little under one cent at the end of Friday.
The main concern is that Bytecoin had been made available on Binance, but the currency went back to having some wallet and maintenance issues with the exchange platform. This led to a slight stoppage in trades there, but trading appears to have come back up as of the end of Friday. This is vital to the currency as about three-quarters of all trades for the currency are on Binance.
Background of the Story
Bytecoin had been off of Binance and Coin Market Cap for a while, thus causing the currency to become less popular and intriguing to people. There had been concerns in the past over pump and dump schemes taking place with the currency. This led to Binance and Coin Market Cap removing the currency from their sites.
Also, the Bytecoin system had struggled with trying to grow over time. This came as there had been a large number of people getting onto the system in a brief period of time. Those people tried to invest in Bytecoin, but some miners were using outdated software programs to produce the currency. A bug was produced on the Bytecoin blockchain as a result, thus causing the network to become unstable.
A stress test was performed by the people behind the currency to see how it can respond. All tests to see that nothing was overloading were successful. The currency is moving back to a period of stability, thus making it easier for people to find.
Not all exchanges have been working with Bytecoin, a point that might have caused the currency to lose some of its recent gains. Poloniex users have been trying to move their coin funds to Binance, but they have not gotten their funds moved yet. The lack of funds on Binance has led Bytecoin investors to believe that Poloniex is trying to scam them. It is uncertain as to what is happening to try and get Bytecoin to become valuable as a result of this issue.