Bitcoin Satoshi’s Vision (BSV) is one of the most controversial cryptocurrencies to have ever existed in the cryptocurrency industry. Its creation was the result of a clash within the Bitcoin Cash community back in November 2018.
As a fork of Bitcoin Cash, Bitcoin SV has been up against the wall. It faced competition from Bitcoin Cash to be the dominant fork and lost out there. One of the primary reasons why the token gained a lot of notoriety is because of its biggest backer Craig Wright, who is infamous for his claims of being Satoshi Nakamoto.
Despite a poor performance throughout 2019 and getting delisted from popular exchanges like Binance and Kraken, BSV started 2020 with a bang. Over the last few days, BSV has surged more than 100 percent to hit an all-time high of $458. The upward rally has also made BSV the fourth-largest cryptocurrency by market cap, overtaking Bitcoin Cash.
The Tulip Trust FOMO
The majority of the crypto community believes that this rally was driven by the news that the Bitcoin SV advocate Craig Wright has just received the private keys to a wallet that supposedly contains millions of Bitcoins.
Wright had been involved in a long court battle with the estate of late David Kleiman, his former business partner. Wright is being sued by Ira Kleiman – the brother of Wright’s late business partner Dave Kleiman – for $10 billion, alleging that Wright was trying to seize Dave’s Bitcoin holdings that they had mined together.
When Wright was asked to disclose the public addresses he owned prior to December 31, 2013, he had claimed that the funds were inaccessible to him as it was entrusted to the ‘Tulip Trust.’
According to Wright, The Tulip Trust contract was signed and written by David Kleiman on June 9, 2011. It states that On January 1st, 2020, Wright would supposedly receive the private keys from a bonded courier, for a wallet that contains close to 1.1 million Bitcoins.
Wright has now filed in court that he “has produced a list of his bitcoin holdings, as ordered by the Magistrate Judge.”
This could be the reason why investors and Bitcoin SV supporters might be buying BSV or swapping their current Bitcoin holdings for the altcoin under the assumption that Wright may liquidate his Bitcoin holdings on the open market in exchange for BSV.
Pump and Dump or Exit Scam?
BSV is already familiar to massive rallies that are often triggered by fake news. Back in May of 2019, a pump-and-dump BSV rally was largely attributed to fake news circulating in China. The news claimed that Craig Wright had successfully proved that he is Satoshi and that Binance would again list Bitcoin SV on its exchange.
Also in May of 2019, BSV jumped almost 70% in a day on news that Wright filed registrations with the U.S. Copyright Office and has been granted U.S. copyright registrations for the original Bitcoin white paper and Bitcoin code.
Discussing this matter, Arthur van Pelt, co-founder of fintech company Dragon Industries Tweeted a photo circulating on the internet of a slack chat where Wright appears to confirm that he has received the final part of a private key from the so-called Tulip Trust.
However, Pelt warned:
“This is nothing less than a fabricated scam, a pump ‘n’ dump orchestrated by the people on the helm. Don’t trade on this, ever. Stay out.”
Some other members of the community believe this an exit scam as more than 4000 participants were involved in a poll from popular cryptocurrency entrepreneur Alistair Milne who asked: “Is a $BSV exit scam in progress?” More than 50% of the voters selected yes.
The result of this poll is proof of Bitcoin SV’s image problem, but it remains unclear as to whether or not this will be enough to hamper its long-term prospects.
The overall cryptocurrency market cap now stands at $241.6 billion and Bitcoin’s dominance rate is at 65.9%. Despite all the controversies, BSV holders are thrilled by its performance as by far it is the best performer of 2020. It is yet to be seen whether BSV can hold this position.