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I was just looking at DOGE/BTC traiding numbers on CRYPTSY over the last month and noticed that at regular intervals someone dumps high volume of DOGE in to the market at dirt chip prices perhaps to drive value down.

On 1/27/14 traiding volume goes from 600 million DOGE day before to 1,2 billion and at that day someone dumps currency at 0.00000010 btc compared to normal day value of 0.00000188 btc (almost 20 times cheaper)

On 2/12/14 Doge reaches all time high of 0.00000291 btc and someone dumps high volumes of DOGE at 0.00000002 btc (more than 100 times cheaper) to drive prices down

On 2/13/14 again someone dumps DOGE at 0.00000010 btc (30 times cheaper than normal) and that starts decline of DOGE prices over next few days from 0.00000291 to 0.00000207 in ten days (30% lost in ten days)

On 2/23/14 someone does it again dumping DOGE at .00000002 btc (100 times cheaper than normal rate)

 

How do I know that this is not just someone made one time mistake and sold couple coins at that price? Traiding volumes days prior to 2/23 were around 200 million doge /day and on the day of the dump it went over 600 million doge/day and goes back to normal day after so we are talking about doubling or trippiling traiding activity with inflow of that cheap currency.

 

First thought that came to my head that it is the same as governments print money to influence values at will, so perhaps there is a way for DOGE currency creator to generate coins outside of the system, because he was very outspoken that he wants to keep value of DOGE as low as possible.

 

The only other case of something similar i could find is Fedoracoin (TIPS) when was approaching all time high on 2/22/13, on cryptsy traiding volume vent up five times and someone dumped TIPS 10 times cheaper than value at the time and traiding volume went down again the next day.

 

Maybe I'm wrong and I'm just misunderstanding the numbers, so if someone with greater insight can give an explanation I will be truly grateful.

 

 

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Flooding the market will make price decrease especially if someone floods the market with coins at a price well below the regular selling price. 

 

Now take the same person with that many coins and if they flood the market with coins priced much higher, the price of Doge will probably increase. 

 

I sell doge in volumes of 100-200k.  Do not use Cryptsy! 

 

 

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