Chivo Wallet deactivates option to display bitcoin price due to trading fraud

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Key facts:
  • The option will be disabled “temporarily”, but it is not clear when it will return.

  • Network users criticized the Chivo Wallet measure and foresee problems when paying in stores.

The team behind the wallet of the government of El Salvador, Chivo, reported this week that it “temporarily” disabled the option to see the price of bitcoin (BTC) frozen for a minute, as many users used it to commit a type of “fraud” linked to scalping (to trade in the short term).

This was explained by the company in a short thread of Twitter, in which he highlighted that users took advantage of the freezing of their exchange rate for 1 minute, time they used to compare the price with other exchanges and see if the cost of BTC it went down or up.

At that time, if bitcoin rose they bought, taking advantage of the fact that Chivo did not update its price; but if it went down, they sold, before Chivo updated; generating an endless source of money whose only limit was the number of times they did the “scalping”.

Chivo Wallet, bitcoin digital wallet of the Government of El Salvador.

As they clarify, do scalping with frozen rate, comparing it with exchanges in real time, it is a type of “fraud.”

Therefore, now they are going to limit the visibility of the frozen rate “while we move to instant convertibility (and no longer frozen)”, so that they can do the trading “they want”, but with the real rate updated instantly.

Chivo clarifies that while this happens, the option to see the rate at the time of conversion “will continue to be disabled”, but all other functions will operate.

What do users say?

In the same social network you can see the multiplicity of opinions of Chivo Wallet users, a app who has already had several problems with Salvadorans, that go from system failures even the usurpation of identity, just as we have reported in CriptoNoticias.

One of the users, Odir Pineda, criticized the application’s measure, recalling that most exchanges They use frozen rates to be able to operate.

“Can you imagine the problem that this will bring when paying in a store?”

Andrea de Herrera, another wallet user, also questioned the decision:

«So if I invest and I have my money in Chivo, and I spend my earnings, can I no longer trade? Just because you think it’s “illegal.” I do not feel that it is illegal to use other apps to see the real time as the BTC rises or falls, I feel that it is selfish on your part, “he recriminated.

And there was a recurring comment that the application begins to fail when bitcoin is on the rise, like this week, which once again exceeded USD 60,000 and seems headed for a new all-time high.

«Totally premeditated what you (Chivo Wallet). They do not even disguise the blockade. Just when the currency is on the rise, no one can put their money to win, “insisted Pineda, complementing @ jeffry_sandova1, who criticized: “the application works well again when the price of bitcoin has dropped a shitload (quite a bit).”

Was the sale of bitcoin affected?

It is difficult to know if, by the measure of the state company, there is a negative or positive impact on the sale of bitcoin, since the wallet does not offer metrics or graphs in that sense, neither in their social networks nor in their Web page official.

In fact, the last upgrade on the performance of Chivo Wallet offered it Salvadoran President Nayib Bukele, on September 27.

Via Twitter, he showed the dashboard of the application, where the number of registered users was recorded at more than 2.2 million, with more than 65,437 transactions per second that are being processed by the system, as explained by Bukele himself.

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The latest Chivo Wallet behavior dashboard shared by Nayib Bukele in September. Source: Nayib bukele / twitter.com

Remember that a single transaction takes several seconds. Do not try to calculate the total daily transactions with this, “warned the president.

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