Bitcoin exchanges are literally chopping up the Polkadot price, while Tone Vays and Binance boss Changpeng Zhao are adopting bullish tones.
“Unscrupulous” Bitcoin Exchanges: Binance and Kraken seem to ruin the Polkadot course (DOT)
On August 21, the Polkatot-Coin DOT was restructured. The community had decided on a new denomination that has been in effect since that day. From now on, a DOT consists of 10 billion Planck (the smallest Polkdadot unit, analogous to the Sathoshi in Bitcoin). Previously, the denomination was smaller: a Planck was defined as one trillionth of a DOT.
The new denomination caused turmoil
The Bitcoin exchanges Binance and Kraken introduced the new Polkadot denomination on their trading venues on January 18th. In this way, the amount of DOT at Polkadot Hodlers (and thus the supply) on the Exchanges apparently increased a hundredfold. On August 10, the Polkadot development team of the Web3 Foundation had already warned against such behavior on the part of the exchanges:
“Don’t be fooled by suspiciously low DOT rates. […]. Impatient exchanges implemented the 100x split of the DOT before our community is ready to make the change. Such actions endanger users and can lead to fraudulent activity.”
Here is the tweet: https://twitter.com/gavofyork/status/1295790782973186049