El Salvador is removing BTC pricing information from the Chivo app to crack down on opportunistic traders

The Salvadoran government has taken steps to prevent users of their Chivo digital wallet from playing with the app’s price-freeze feature for risk-free profits through arbitration.

On October 19th, Chivo’s Twitter account announcedTo what Wallet users cannot see the reference price for trades executed using the Price Freeze featurewhich allows traders to save the price of Bitcoin (BTC) indicated by the application for one minute.

Chivo tweeted that Opportunistic traders have used the price freeze feature to arbitrage on other cryptocurrency trading platforms around the world during times of significant price volatility for Bitcoin.. The price freeze feature gave traders the ability to take advantage of price gaps in other exchange rates while quickly using the Lightning Network to move assets, Chivo explained.

â ???? The ‘scalping’ performed was to take advantage of the fact that Chivo held the price frozen for 1 minute and use that minute to compare the price with other exchanges and see if the price of Bitcoin went down or up. a ????

El Salvador is removing BTC pricing information from the Chivo app to crack down on opportunistic traders
El Salvador is removing BTC pricing information from the Chivo app to crack down on opportunistic traders

Although high frequency scalping is a legal form of trading, Chivo describes traders who used the exchange’s frozen prices to arbitrate against exchanges in real time, as if they were making potentially “endless” profits through “cheating”..

Look into the future Chivo plans to remove the pricing feature and offer real-time price references to Bitcoin traders with its app..

September 7th El Salvador passed its controversial Bitcoin law, which recognizes BTC as legal tender in the nation.

Although critics highlighted low blockchain and digital literacy rates among Salvadorans in the pre-law era, The legislation appears to have encouraged the widespread adoption of Bitcoin across the country.

Salvadorans now seem to be trading their US dollar savings for BTC at an increasing pace; President Nayib Bukele share That on October 14, Chivo had registered 24,076 requests for transfers valued at more than $ 3 million.

El Salvador also announced plans to invest a portion of the $ 4 million proceeds from Chivo’s Bitcoin fund to build a new veterinary clinic in the capital. Locals of San Salvador on October 10th.

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