JPMorgan Filed Market Abuse
About a week ago, the notorious billionaire and chairman of JPMorgan declared that Bitcoin is a “fraud” and it’s a worst investment than “tulip bulbs”.
“Bitcoin is a fraud. It’s making stupid people, such as my daughter, feel like they’re geniuses. It’s going to get somebody killed. I’ll fire anyone who touches it.”
And somebody thought his words deserve punishment. Not only they were hurtful to the stock market but it spread lies among the people not familiarized with the concept of Bitcoin. And someone took action.
Blockswater’s market abuse report
It was about time someone would actually take action against the #1 hater of Bitcoin, Mr Jamie Dimon. Blockswater filed a market report against Jamie Dimon for “spreading false and misleading information”. The company filled a report to Swedish Financial Supervisory Authority against JPMorgan and Dimon. He actually broke the 12th article of the European Union’s Market Abuse Regulation (MAR) by saying “Bitcoin is a fraud”.
In the complaint, Blockswater – an algorithmic liquidity provider – mentioned that Dimon’s words had a negative impact over the Bitcoin market and the cryptocurrency reputation. Moreover, Blockswater managing partner – Florian Schweitzer – declared that Dimon knew exactly what his action will do.
“Jamie Dimon’s public assertions did not only affect the reputation of bitcoin, they harmed the interests of some of his own clients and many young businesses that are working hard to create a better financial system”.
Florian declared that Jamie Dimon’s statement “smells like market manipulation”. Afterwards, JPMorgan was trading Bitcoin derivatives over a Stockholm based exchange. The news of Jamie Dimon saying Bitcoin is a “fraud” and China blocking domestic exchanges caused a 24% drop in the market.
Jamie Dimon’s Statement Reactions
Dimon’s statement was noticed by Alex Gurevich, former JPMorgan executive. Alex publicly declared that Jamie is a great bank CEO but not a trader or a tech entrepreneur. Charles Hayter, the Co-founder of CryptoCompare declared that : Jamie Dimon doesn’t have the strongest track record when it comes to looking over the hill and generally you can’t teach old dog new tricks. Furthermore, The Guardian wrote an article about this.
As Bitcoin grows, banks will feel threatened about it. Bitcoin managed to create a decentralized network without a central authority. Moreover, the network can shift money with a complete trust. What is funnier, the fact that JPMorgan is researching their own blockchain technology. I’m sure people are asking – How would his technology be better than Bitcoin? Would a bank create a decentralized cryptocurrency? Would people trust it?