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The liquidated position exceeded 20 million US dollars in 24 hours. What happened behind the sharp rise and fall of $ORDI?

Sharon

Read this article in 13 Minutes

In less than a week, $ORDI has achieved an increase of nearly 20,000 times

Table of Contents:

· 1-day surge from $50 to $65, $ORDI market cap enters the $1 billion club

· Impacted by the news of "Inscription will disappear", $ORDI drops 31% in a straight line

· Bitcoin Core developers "give in" that night, $ORDI directly hits ATH

Since the beginning of this week, the Mingwen Longtou Ordinals and its token $ORDI have undoubtedly become the hot topic of the entire cryptocurrency industry. According to CoinGecko data, as of the time of writing, $ORDI is priced at $56.17, with a 7-day increase of 187%, and has risen nearly 20,000 times from its initial price of $0.003.

However, while experiencing a surge, $ORDI also experienced a sharp decline in just 2 days. On December 6th at around 11:00, it dropped almost straight down from $63.26 to $43.59, and then fell back from its historical high of $68.37 on December 7th at around 2:00 to $56.17.

What happened in the meantime?

1 Day Surges from $50 to $65, $ORDI Market Cap Enters $1 Billion Camp

$ORDI's rise this time has been hinted since December 2nd, but the initial increase was not significant. It rose from $21.19 at zero hour on December 2nd to $32.8 at 5 am on December 3rd, with an increase of 54.8%.

However, from around 3 pm on December 5th, $ORDI began to take off, rising straight from $50 to $65 around 6 pm on December 5th.

Source: trdingview

On December 5th, according to CoinGecko data, ORDI's market capitalization surpassed 1 billion US dollars, reaching 1,053,372,018 US dollars, ranking 59th in the market capitalization ranking, and becoming the first Bitcoin inscription project with a market capitalization of over 1 billion US dollars.

In addition, on December 5th, CoinDesk released the 2023 most influential annual list, in which Casey Rodarmor, the founder of the Bitcoin protocol Ordinals, ranked first, which also caused widespread discussion within the community.

Meanwhile, according to Blockworks Research data on December 4th, there were a record-breaking 8.34 million Ordinals-related transactions in November, generating approximately $38.7 million in revenue for Bitcoin miners. The data shows.

However, on December 6th, an unexpected crash began that caught everyone off guard.

Due to the news of "Inscription will disappear", $ORDI fell 31% in a straight line

On December 6th, around 11:00, $ORDI began to fall from $63.26 and continued to drop until around 20:00 that evening, reaching $43.59, a decrease of 31%. The cause of this decline may have been evident as early as 10:00 on December 6th.

On December 6th at around 10 o'clock, Casey Rodarmor, the founder of Ordinals, made a statement regarding the legitimacy of Rune Alpha, stating: "I have no affiliation with them, and when the official Runes are released, these Runes will not be recognized." The statement was made in response to an article on The Block Beats.

Casey's response is in reference to a recent Bitcoin network inscription project called Rune Alpha. On December 5th, Rune Alpha announced the launch of its mainnet, and many users within the community mistakenly believed it to be Casey's project.

However, this is not a huge bearish news for $ORDI. The real bearish news comes from a tweet by Bitcoin Core developer Luke Dashjr.

On December 6th at around 9am, Luke posted on social media that "Mingwen" is using a vulnerability in the Bitcoin Core client to send spam messages to the blockchain. Since 2013, Bitcoin Core has allowed users to set an additional data size limit when forwarding or mining transactions. By blurring its data as program code, Mingwen bypassed this limit.

Luke Dashjr said that "this vulnerability was recently fixed in Bitcoin Knots v25.1. Due to serious disruptions to my workflow at the end of last year (v24 was completely skipped), the fix took longer than usual. The vulnerability still exists in Bitcoin Core in the upcoming v26 release. I can only hope that it will be finally fixed before v27 next year."

Meanwhile, Luke also pointed out in the subsequent update that if the vulnerability is fixed, it means that Ordinals and BRC-20 will no longer exist.

Subsequently, $ORDI began to fall all the way and caused a long position liquidation across the network on December 6th at around 13:00. According to Coinglass data displayed, from around 13:00 on December 6th to the following hour, the network liquidated 24.47 million US dollars, with the main long position liquidation, of which $ORDI liquidated 3.66 million US dollars.

There are also lucky ones who have avoided the crash. According to Lookonchain monitoring, a whale address sold 59,000 ORDI before Luke criticized ORDI, earning $2.3 million. It is reported that the address withdrew 65,263 ORDI ($1.3 million) from Binance on November 22 when the price was $20.

Bitcoin Core developers "surrendered" that night, $ORDI directly hit ATH

After Luke's post, along with the continuous decline of $ORDI price, the discussion about Bitcoin Core developer permissions in the community has become more and more intense, but mostly with condemnation and opposition.

Perhaps due to the increasing opposition received, Luke showed signs of "giving in" during a discussion with community members on December 7th, stating "We don't necessarily have to eliminate all the inscriptions to provide value to Bitcoin."

Later, $ORDI rose sharply, from $45.66 around 23:00 on December 6th, to $68.37 around 02:00 on December 7th within 3 hours, which is also the highest price in the history of $ORDI so far.

But then Luke continued to output, responding to the user's question "You only want to launch a project that you want to make money from, without caring about the prosperity of the BTC ecosystem." On December 7th, at around 4 o'clock, Luke responded, "If we give in, we may make more money, but our company will prioritize the interests of Bitcoin. Spam attacks are not economical."