If you’re connected to a few cryptocurrency influencers on Twitter, then chances are you’re connected to MarQuis Trill (@6BillionPeople). Depending on how closely you follow his tweets, you may find yourself doing very well, or if you saw his tweet on Verge (XVG) on Christmas, you could have lost millions. With 3.86 million followers, what he says matters.
In his defense, it is certainly possible that his Twitter account was hacked, as he followed the post with this message:
Although Verge managed to hold at around 15 cents, the drop wiped out most of the gains leading up to Christmas Eve, from a low of around 7.5 cents to a peak of over 28 cents. Some people speculate that the rise to 28 cents was also due to a rumor spread on a fake John McAfee account that suggested it would hit $15.
I have NEVER, at ANY time predicted XVG would reach a price of $15. The Oracle Times did not bother to even confirm it was a fake McAfee account: this is why we have check marks.
— John McAfee (@officialmcafee) December 27, 2017
Now that the rumor mill has slowed down, it’s possible that XVG may hit another bull run, particularly with an inflow of BTC into this coin. Although Verge is an old digital asset, it has escaped the interest of most investors until recently. On the other hand, ZCash (ZEC) and Monero (XMR) have risen strongly. The tweets affected Verge in both directions, leaving people to wonder if there was a pump-and-dump scheme in place, and whether they should move the value of their Verge into different coins.
The Wraith feature which was to be announced by the end of 2017 is an improvement on the coin’s wallet and security, but it has been delayed. A coin’s potential success depends upon the presence of developer talent and it seems that the Verge team is well engaged. It’s possible that a delay in Wraith protocol might cause a slump in the price, but the buzz is that the delay is unlikely to have an effect.
Earlier in November, there was bad publicity because of a breach on Coin Pouch and the theft of 126 million Verge coins. By comparison, the breach was arguably much more significant than the Twitter-play and it had a relatively small effect on the price of Verge.
If we examine the tweet by @6BillionPeople, it contained advice to sell off all Verge Cryptocurrency. If in fact, investors dumped their coins as a reaction to the rumor, it resulted in a drop of 50% and counting. The peak Verge value of 2000 Satoshis (0.27USD) dropped down to 622 Satoshis (0.09USD) within seconds. About 177 million Verge coins were sold within an hour of this tweet. At the time, the loss accounted for 18 cents per coin sold, with 32 million dollars lost in one hour on just one exchange. Anyone who bought at the $0.09 price would now see a very nice gain of about 50%. Talk about a quick buck.
MarQuis explained that he didn’t post the tweet and that his account was hacked. The Verge team also tried some damage control, by tweeting that people were spreading rumors which might affect the market and that there was nothing wrong internally, in fact, and that this project was likely to grow with Wraith update.
There are rumors being spread on the internets that @justinvendetta hasn’t been communicating for long time and that #WraithProtocol isn’t real. This is utter non-sense and pure FUD in attempts to create panic and bring down #Verge price and reputation. Things are on track.#xvg
— vergecurrency (@vergecurrency) December 26, 2017
This just goes to show that social media, including Twitter, has shaped the landscape of crypto-investing. FUD (Fear, Uncertainty & Doubt) leads to dips, while FOMO (Fear Of Missing Out) leads to inflated prices. When looking at the underlying value of XVG, Wraith may very well have a positive effect overall.
UPDATE: We’ve got some juicy info that’s even bigger than spreading rumors on Twitter. You’ll want to read this.
Disclaimer: I have XVG holdings, I am not a financial advisor, and this is not financial advice.