A prominent cryptocurrency influencer has come under fire after hosting a livestream that appeared to encourage pump-and-dump schemes, a controversial practice of artificially inflating an asset’s value before selling off holdings at a profit. The Nov. 20 broadcast, widely criticized on social media, featured discussions about coordinated buying of low-market-cap tokens with promises of quick gains. Many viewers and industry experts condemned the content for promoting unethical and potentially illegal trading behavior.

The livestream gained significant attention as the influencer’s audience, numbering in the hundreds of thousands, participated in the promoted trades. While some users reported short-term profits, others experienced losses as token prices crashed almost immediately after the pump. Critics accused the influencer of exploiting inexperienced traders and warned of the long-term damage such schemes could inflict on the cryptocurrency market’s credibility.

Regulators and watchdog groups have increasingly scrutinized such activities, viewing pump-and-dump schemes as market manipulation. Legal experts have noted that influencers engaging in these practices risk regulatory action, including fines and bans from participating in financial markets. Platforms like YouTube and Twitch, where such content is often broadcast, also face growing pressure to crack down on creators promoting unethical trading practices.

The incident has reignited debates about the role of social media influencers in the cryptocurrency space and the need for greater transparency and accountability. While many influencers serve as valuable sources of education and market insights, cases like this highlight the darker side of their influence. Industry advocates are calling for stronger community standards and clearer regulatory frameworks to protect retail investors from similar exploitative practices.

ZA Bank, a leading virtual bank in Hong Kong, has introduced cryptocurrency trading services for retail users, marking a significant step in the city’s embrace of digital assets. Announced on Nov. 21, the new offering allows customers to buy, sell, and hold major cryptocurrencies such as Bitcoin and Ethereum directly through the bank’s platform. This move aligns with Hong Kong’s broader strategy to position itself as a hub for cryptocurrency and blockchain innovation.

The service integrates with regulated cryptocurrency exchanges licensed in Hong Kong, ensuring compliance with local laws and safeguarding user assets. ZA Bank’s CEO, Ronald Iu, stated that the initiative aims to meet growing demand from retail investors for secure and accessible crypto trading options. The bank also offers fiat-to-crypto conversion services, making it easier for users to enter the digital asset market.

This launch follows recent regulatory developments in Hong Kong, which have encouraged banks and financial institutions to explore crypto-related services. The city has implemented a licensing regime to foster trust and transparency in the sector, aiming to attract global talent and investment in blockchain technology. ZA Bank’s foray into crypto trading underscores the growing mainstream acceptance of digital assets in traditional banking systems.

While the development has been welcomed as a sign of progress, some analysts caution that retail participation in crypto trading carries risks due to market volatility and potential regulatory changes. However, proponents argue that regulated platforms like ZA Bank provide a safer alternative to unregulated exchanges, bridging the gap between traditional finance and the emerging crypto economy.

Wrapped Bitcoin (WBTC) experienced a sudden and dramatic flash crash on Binance, plummeting from approximately $43,000 to as low as $5,000 in a matter of seconds. The incident, which occurred on Nov. 21, was reportedly caused by a single large sell order that overwhelmed the market’s liquidity. While WBTC’s price quickly recovered, the flash crash underscored vulnerabilities in trading platforms during periods of low liquidity or extreme market moves.

Binance issued a statement shortly after the event, attributing the crash to “market dynamics” and confirming that no technical issues or system errors were involved. The exchange also reassured users that its systems were functioning normally, but the event has reignited concerns about the risks of thin order books and automated trading systems on centralized exchanges.

The flash crash led to liquidations and confusion among traders, some of whom saw their positions wiped out during the brief price drop. Analysts have pointed to the lack of liquidity in WBTC trading pairs as a potential factor. Wrapped Bitcoin, an Ethereum-based token pegged to Bitcoin’s value, relies on market participants to maintain its price parity, making it susceptible to sudden volatility when large orders disrupt the balance.

This incident highlights the challenges faced by exchanges and token issuers in maintaining stable and efficient markets. It also serves as a reminder for traders to exercise caution, particularly with assets that have lower liquidity or are prone to sudden price swings. As the crypto market matures, ensuring robust liquidity and implementing safeguards against flash crashes will remain critical for protecting investor confidence.