Arkham, a popular cryptocurrency exchange, has denied sending an erroneous Bitcoin alert. The company claims that the alert was sent out just after Bitcoin’s 6% drop in value, and was meant to inform users of the market movement. Despite accusations of panic-inducing alerts, Arkham maintains that it acted in the best interest of its users. The incident highlights the need for clear communication and transparency in the cryptocurrency industry, as well as the importance of regularly monitoring market movements.
Market Intelligence Platform Arkham Intelligence Refutes Claims of Sending Error Alert
Arkham Intelligence, a market intelligence platform, has denied allegations that it wrongly sent alerts to certain users. These alerts were based on transactions of Bitcoin worth over $10,000, which were given two labels by its user, DB; ‘Mt Gox’ and ‘US Gov.’.
In response to the accusations, Arkham conducted an investigation and clarified that their alerts were accurate. They explained that DB had set the labels himself, and based on that, inferred that certain Bitcoin addresses were transacting. DB then tweeted publicly that these transactions were happening, attributed them to the US government and Mt. Gox, and when the transactions did not take place, accused Arkham of making an error. Furthermore, DB asserted that a bug fix implemented by Arkham had caused the alert to be sent erroneously to some of its users.
However, the market intelligence platform denied all allegations and stated that their alerts were correct, and that they had not sent any inaccurate alerts to anyone.
The alert was also responsible for causing confusion and concern as it coincided with a 6% decline in the value of Bitcoin, plummeting from $29,472 to $27,696 in merely an hour. The exact timing of the alert had been unclear due to the privacy status of the alert. But, Arkham Intelligence stated that the alert was sent a few minutes after the market crash ended and thus, could not have affected the Bitcoin price.
Even until now, the actual cause of the crash remains unknown. However, some analysts have suggested that there may have been some non-standard on-chain activity that triggered the alert, such as ordinals inscriptions on the relevant addresses.
Nevertheless, despite the confusion and panic, Bitcoin eventually gained value before and after the crash, and as of 12:30 am UTC, the asset’s price was up 3.5% over a 24-hour period.
In conclusion, the accusations of erroneous Bitcoin alerts sent by Arkham Intelligence have been denied by the market intelligence platform themselves, and they have stated that the alerts were accurate based on the labels given by its user, DB.