Verge Pornhub Partnership… Insider Trading?

You may be familiar with the Verge Pornhub partnership in which Pornhub announced they now accept Verge as a payment method. This has been trending across the cryptocurrency world over the last 24 hours. Following this news, the trading volume for Verge surged to an all time high on Binance, since the coin was first listed on 2nd October 2017.

Previous high was just under 5billion (4,964,000,000) Verge traded in 24 hours on 17th December 2017, Almost 6.5billion (6,450,000,000) Verge traded 17th April 2017 following the Pornhub verge partnership.

This was seemingly huge news for Verge and the general cryptocurrency world as a whole, given that this is a step closer to mass adoption of cryptocurrency. If you don’t believe this is a step towards mass adoption… Pornhub is the 14th most visited site globally, according to similarweb.com with 3.61billion unique visitors last month. Meaning a seemingly huge number of people potentially saw this news and may well be using Verge… So why is the price down over 30% in the last 24 hours I hear you ask?

Verge Pornhub partnership, insider trading?

This is merely speculation but one of the theories circulating right now is this is simply insider trading. The news broke out on Twitter at roughly 7/8am GMT (6/7am UTC).

This news went viral in a matter of minutes and the trading volume began to surge. Investors all over the globe excited by the news and the potential Verge now had that it could be used in the real world, albeit to cover their tracks on an adult site.

It came as quite a shock that the price was plummeting rapidly at the time of announcement. Check out the chart on Binance following the news:

The circle on the left is roughly the time the news was announced, the other circle shows 5 minute candles in which approximately 600million Verge was traded and the price dropped 33%. (A Total of 1.6billion Verge was traded in the 2 hour period when Verge had its biggest drop)

We can assume that in this period the majority of the trades were sell orders given the price was falling fast and traders may have been looking to cut their losses. However this does not answer why there was such big sell orders placed following this news, as most would have thought that everyone would be looking to buy into Verge given the huge news.

If we look at there chart for the price leading up to that this can give us some idea:

The circle shows 12 hours before the news was announced we can see how it suddenly starts to spike leading up to the announcement… this price increase can only be caused by an increase in volume and buy orders. The news was then announced just before the the high point indicated on the above chart and dropped following that news.

While this does not confirm insider trading it is easy to see why people are speculating this. The only people who could have known about this partnership prior to the announcement, was those working on the deal. The sudden drop following this would also tie in with the story as those had bought it before the announcement were now looking to cash in to the masses who were flooding into the market following this huge announcement.

Further evidence

It is also worth noting that the Verge partnership is actually with a company called Mindgeek, who in fact own a number of pornography websites including Pornhub. Mindgeek are the first company to adopt the cryptocurrency Verge and this will be used across a number of their pornography websites. This announcement was not only made by pornhub but a few of the other sites owned by Mindgeek.

Had the announcement been of the partnership with Mindgeek it may not have sparked such a huge reaction across the world but given the following each of the individual twitter accounts have, this went viral pretty quickly and the sell orders were huge…

Finally this reddit post was suspiciously deleted before the announcement even though it was posted some 24 hours before the announcement

Again this is all merely speculation, but we can see why some are saying this is insider trading. It is likely it a PR exercise and it has certainly worked. However, it cannot be argued that whether or not insider trading has gone on this news is still huge for both Verge and the cryptocurrency community.

By | 2018-04-24T16:38:35+00:00 April 18th, 2018|Cryptocurrency News|0 Comments

Leave A Comment