A popular YouTuber has argued that Wall Street launched the Bakkt Bitcoin Futures to attack Bitcoin and the entire cryptocurrency market.
The prominent YouTuber, who goes by the name Chico Crypto, shared with his over 60,000 subscribers, evidence Bakkt was designed to destroy the whole cryptocurrency market.
In his recent YouTube video headlined “Bakkt is BAD for BITCOIN! Exposing the Wall St. Attack”, Chico Crypto pointed at some similarities between the Bakkt futures exchange and custody solution.
He said the ICE-linked futures exchange is using the same actual process of collecting “physical” Bitcoin from the “physically-settled” Bitcoin futures contracts.
Chico said he investigated Bakkt due to its increasing volume in recent times. He said since the volume of Bakkt started peaking up, other Bitcoin Futures have been descending.
Fed Bank of San Francisco Claims Bitcoin Futures Behind BTC Price Drop Below 200k
Chico said a research by the Fed Reserve Bank of San Francisco indicated that the launch of seamy futures and like products behind the Bitcoin price crash from 20k.
The research concludes: “The rapid run-up and subsequent fall in the price after the introduction of futures does not appear to be a coincidence. Rather, it is consistent with trading behavior that typically accompanies the introduction of futures markets for an asset.”
In the video, Chico Crypto said the launch of Warehouse raised his suspicions. Bakkt has not given out a public address or addresses designated for the Bakkt Warehouse, a decision he referenced as “extremely weird” considering that the firm is going to be holding the Bitcoin store of value.
Through Bakkt and other Bitcoin Futures, Chico said, government artificially keep prices of futures low against the US Dollar.
He said Bakkt is just another product aimed at attacking the growth of Bitcoin while keeping the US dollar dominant.
Since Bakkt did not make the address they were going to be using for the Bitcoin Warehouse, Chico said he initiated a research on what Bakkt intends to do since they are going to hold the Bitcoin.
Behind DACC Acquisition
His research led him to discover that Bakkt acquired the Digital Asset Custody Company (DACC) that was founded in late 2017 by Douglas Schwenk and one Matthew Johnson.
Chico researched about them via Google and discovered that Matthew is the VP for blockchain engineering at Bakkt. The two founders are team members at LabcoNYC, a firm creating and selling companies.
In essence, Chico said they are venture builders designing ideas for companies from scratch till the end.
As revealed, Bakkt acquired DACC for a whopping eleven million dollars. This is cheap when compared to how much Coinbase paid to acquire Zapo –five times the amount Bakkt paid to acquire DACC.
Months after the acquisition, Bakkt was approved by the New York Department of Financial Services to launch their Bitcoin Warehouse for all institutional clients.
“Why create an independent warehouse which you own tied to delivery and not be like a normal futures product with physical delivery where a third party usually has the commodity like gold vaults and cattle Lots?”, Chico asked.
Conspiracy Theory: Donald Trump and Bakkt CEO are Allies
Hammering on the reasons Bakkt was launched to attack Bitcoin, Chico reminded his channel subscribers that on July 3, 2019, President Donald J. Trump nominated Ms. Kelly Loeffler, Chief Executive Officer of Bakkt, among the presidential delegation to attend the Final Match of the FIFA Women’s World Cup 2019.
With the association between the two, President Donald Trump who is no fan of Bitcoin and Loeffler, one can keep wondering what Bakkt will offer the cryptocurrency space.
Remember that crypto expert Tone Vays had also criticized Bakkt, saying the firm has no good to offer the ecosystem, considering that there are pre-existing ideas offering the same thing as Bakkt. If this is not a conspiracy theory, Bakkt needs to open up on some issues.