Lucrative opportunities lurk in far corners of the crypto market as the price of wrapped bitcoin hit an all-time high of $70,000 on Richard Heart’s new PulseChain last Wednesday.
The founder tweeted the new all-time high for Bitcoin (BTC), or Wrapped Bitcoin (wBTC), after the asset surged from $27,000 to $70,000.
Bitcoin price rollercoaster
The chart below shows wBTC’s parabolic rise from $27,000 to $70,000 in about 20 minutes.
wBTC volatility | Source: Twitter
The price stayed at $70,000 for 10 minutes before falling spectacularly and reviving previous levels.
Snapshot on DEX screener as WBTC surges to $70,000 – Source: Trading View
The volatility of packaged Bitcoin revealed PulseChain’s weaknesses rather than strengths after volume skyrocketed without reason as the price surged.
Previously, there was almost no activity on the platform. One crypto user stated that a capital injection of less than $40,000 was required to increase the price of the wrapped bitcoin, betraying the platform’s low popularity and usage.
The pronounced volatility of wBTC in long and short trades is also characteristic of a classic pump-and-dump system. The small amount of capital required to move markets suggests that even non-whales could manipulate bitcoin price on the network.
Lower bitcoin liquidity following the collapse of Alameda Research allowed whales to move markets with lower trading volumes.
Since its inception, PulseChain has failed to live up to its founder’s expectations. The project’s native HEX token is down over 50% and has received minimal approval from DeFi participants.
Accordingly, users may also be wondering why Heart is flaunting wBTC’s price surge.
Community blames HEX and Heart of Pyramid Scheme
A dedicated scam section has been set up on PulseChain’s HEX website following complaints from the crypto community. Heart has also been publicly accused several times.
Skeptics stress that the promise of tangible rewards for holding crypto is a big red flag. HEX users can stake crypto to earn 40% of annual rewards.
Other factors that raise doubts about the credibility of the project are:
- Founder Richard Heart (real name Richard James Chueler) was previously accused of involvement in a 2002 spam scheme that was taken to court.
- Chueler has openly admitted that PulseChain uses “tactics a scam might use,” including referral bonuses and get-rich-quick schemes. Despite these questionable elements, the founder insists that PulseChain is legit.
- HEX has minimal use cases.
- The HEX staking mechanism represents a Ponzi scheme. The project discourages investors from withdrawing funds by promising high long-term returns and imposing penalties for early withdrawals.
CoinFabrik and ChainSecurity code audits confirmed that HEX smart contracts contain no bugs.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.
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