[ad_1]
Poloniex, one of the major cryptographic exchangers, has recently started trading its Bitcoin Cash protocols for the next step. They give the opportunity to exchange Bitcoin Cash ABC (BCHABC) and Bitcoin Cash SV (BCHSV). Their plan is to take a neutral position on the decision to choose one of the forks that users choose, but they also want to empower them by offering a trading activity that is not usually an option.
Through pre-trading, the stock market wants to become "one of the most innovative stock exchanges in the world". As the approaching days approach, they plan to evaluate each hard fork individually to help them determine whether one of the forks or simply offering trading before the determination is made.
Given that Craig Wright's BCHSV trading has outperformed BCHABC, it would be reasonable to assume that Bitcoin Cash SV is better received by the market. Although many people, including Dr. Wright, are not very satisfied with the pre-trading exchange offer. Just yesterday, he went on Twitter to suggest that the platform was committing a crime by offering bare shorts.
@Poloniex
You understand that allowing shorts and naked transactions is a criminal offense in the United States ….When you lose, we'll be there with the lawyers and pick up the carcass dry.
– Dr. Craig S Wright (@ProfFaustus) November 10, 2018
Short sale naked
Short sale nakedShorting is the practice of short selling a negotiable asset of any kind without first borrowing the security or ensuring that the security can be borrowed, as is generally done in a market. short sale. The transaction generally remains open until the shares are acquired by the seller or the seller's broker settles the transaction.
Short selling is used to anticipate lower prices but exposes the seller to the risk of a price hike. In 2008, the SEC banned what it called "abusive naked short selling" in the United States, as well as in some other jurisdictions, in order to drive down share prices. The lack of delivery of shares is legal in certain circumstances, and bare-selling in naked is not in itself illegal. In the United States, bare short selling is governed by various SEC regulations that prohibit this practice.
In this particular case, Dr. Wright's argument holds up because Poloniex offers a tradable asset that did not exist technically (pre-fork) until now. Although the SEC claims that in a few cases, market makers may be allowed to use naked trading to increase their demand.
[ad_2]
Source link
