Interesting action on Mintpal the last few days. The order book has us "pegged" around current levels with 10K bid down to .007 and 10K ask up to .0084. This could mean that buyers and sellers have found near equilibrium at this price level and volatility is gone. Or it could mean that a large investor or trader is pegging the price here and vacuuming up most of the orders in between. I guess the latter.
Say somebody is looking to invest 500 BTC in darkcoin. They found no large sellers OTC, so their only alternative is to hit the exchanges. They buy in the first 5-10K DRK then use that to limit the upside to prevent runaway prices while they are buying. Meanwhile they place sufficient buy support underneath to perhaps catch a large sell order but also because they do not want their sell wall to crater the price: sure they would get more cheap DRK but they would also destroy confidence in so doing. They want to be careful not to scare away the average holders by cratering the price and increasing volatility.
I don't think the typical trader whale would be so careful with their buying. They would be more like a bull in a china shop, setting huge sell walls with no buy support, paying trolls to hit BTCtalk, then let DRK fall and scoop up from panic sellers. Once they have their supply they pull the sell wall and pump the hell out of it. Nice to see this is not happening!
So here we are. Maybe some big money is taking a position in DRK. If so, welcome aboard sir or madam; may your investment decision pay off generously!
