In the past weekend, two records were created. Chinese spent 168.2 billion yuan on Alibaba’s e-commerce platform on 11 November alone. The other record happened in the cryptocurrency market. BCH, one of the CST of Bitcoin, peaked at 0.5389 btc or ~2,800 USD at that time. It’s mostly agreed that it’s another classic pump and dump trick, from which manipulators are trying to harvest profits from derivative trading and exchange trading. Jiang Zhuoer, who is considered one of the pushing hands behind the show, said today that he had dumped all BTC and bought 50 million worth of miners instead.

BCH gained “impressive” momentum in the past two days but the sprint didn’t last long,

Donald McIntyre‏:

$BCH is down ~70% from yesterday’s pump highs:

Whatever you are trying to pull here is certainly disgraceful guys.

cc @rogerkver @JihanWu @gavinandresen and supporters. ?

$BCH is down ~70% from yesterday's pump highs: Whatever you are trying to pull here is certainly disgraceful guys.

cc @rogerkver @JihanWu @gavinandresen and supporters. ? pic.twitter.com/z2GhAf5FLN — Donald McIntyre (@TokenHash) November 13, 2017

The BCH pump comes along with support from well-known figures in the industry, including Gavin Andresen and Kim Dot Com.

Bitcoin Cash is what I started working on in 2010: a store of value AND means of exchange.

Bitcoin Cash is what I started working on in 2010: a store of value AND means of exchange. — Gavin Andresen (@gavinandresen) November 11, 2017

Then Roger Ver, soon retweeted, with slight modification of entry date: 2011

#BitcoinCash is what I started working on in 2011: a store of value AND means of exchange. https://t.co/OPC3TQ2fQK — Roger Ver (@rogerkver) November 11, 2017

One may notice that the “AND” is in capital letters, which is used to imply that BTC is not fit for daily transaction due to high transaction fee.

Kim Dot Com tweeted a link of the letter from the CEO of Bitcoin Cash. By the title alone, Bitcoin Cash has announced its centralized organization structure. It might not be a bad thing as another centralized project, Ethereum, has made impressive achievement so far.

The blitz attack of hash rate has been predicted by AK, a senior crypto investor in China. On 4 August, he released an article explaining the potential attack vector: the Emergent Difficulty Adjustment algorithm. He also mentions that to achieve the expected result, futures of BCH must be ready on major exchanges. Now with BCH weekly futures readily available on okex, everything seems to be ready.

When was asked why not dump BTC and direct hashrate to BCH, Jiang Zhuoer said:

I have dumped all of my BTC, which are then converted into miners( miner=coins in the future). I will point my hashrate to whatever is more profitable. I will convert my BTC into BCH & RMB and hoard BCH.

On 4 November, he also claimed that he had bought 50 million worth of ASIC miners during the “exchange shutdown” period.

This will certainly upset the core group as such behavior cannot be blocked or denied unless the pow algorithm is changed, like Luke Dashjr suggested:

“Why do we as a community avoid changing the proof-of-work algorithm, even long after the original criteria for a PoW change have been met? “The miners are too big to fail.” ??? Many people involved in Bitcoin wanted to get away from bailouts like this! “

However, the modification of POW may uproot the cornerstone of Bitcoin network and admit failure to the miners. By nullifying Segwit2x, the core developers have won the first battle for controlling codes. Who is going to win the second battle for mastering the hash power? Is the community ready for the migration of hashrate and the confusion caused?

There has been 5000% increase of BTC.TOP in the last 24h. With the upcoming hard fork of BCH tonight, we might see more fluctuation ahead.