Has the wolf just entered the hen house?

In a classic case of "Do as I say, not as I do", a Goldman-Sachs backed company, Circle, has purchased Poloniex, a centralised cryptocurrency exchange.

Goldman Sachs is as establishment as establishment gets and has been openly critical of cryptocurrency in virtually all of their public discourse regarding the topic. Could it be that the wealthy elite behind this organisation are worming their way in quietly, to tap into the vast sums of potential money that can be made in this new frontier?

Poloniex is not the largest of exchanges, but it still has a significant role in crypto trading. It exchanges a broad range of pairings as can be observed on this list. It is possible that Goldman Sachs wishes to dip their toes in cryptocurrency without getting in too deep, buying a relatively small exchange to get things started.

The fact that establishment figures such as JP Morgan and Goldman Sachs vehemently criticise cryptocurrency, yet turn around and invest heavily in it, should be an indicator that this market is here to stay for the long term. It could well be that their criticisms are deliberately suppressing the market, giving them the opportunity to accumulate this new source of revenue before it reaches mass market size.

A similar situation happened months ago when Jamie Dimon called Bitcoin a fraud, yet it was found that JP Morgan was involved in significant investments in Bitcoin within weeks of its price falling. If this behaviour is any indication of future activities, expect to see more FUD whilst massive global investment firms quietly accumulate large positions in cryptocurrency. This is market manipulation at its finest.

source:

