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Is there any measure of how much was exchanged out of ETH? If you wanted to pump that number up all you need to do is create lots of wallets and transfer ETH am

Is there any measure of how much was exchanged out of ETH? If you wanted to pump that number up all you need to do is create lots of wallets and transfer ETH amongst them.

googletazer 9y ago
His figure is the volume of ETH / fiat trading, not the volume of ETH transfers. Look @ http://coinmarketcap.com/ http://coinmarketcap.com/
- Animats 9y ago
  The question is whether you can get cash out of the exchange quickly. How many ETH exchanges could write a check for $10M?
  - grandalf 9y ago
    You'd have to use one of the cryptocurrency desks (dark pools), and it would probably take place the same day or the next day.
Animats 9y ago
Right. As Wall Street learned in the 2010 "flash crash" a few years ago, much of the "liquidity" created by high frequency trading is fake. When a big seller sold 9% of the trading volume and wanted real money, the entire market crashed for 36 minutes. [1] https://en.wikipedia.org/wiki/2010_Flash_Crash https://en.wikipedia.org/wiki/2010_Flash_Crash
- grandalf 9y ago
  > much of the "liquidity" created by high frequency trading is fake Are you referring to the strategy of placing and canceling limit orders that were never intended to clear? I think it's just a matter of your definition of liquidity. If you use a trading strategy that assumes that all limit orders will remain there for 10 full minutes, you might turn out to be wrong, and if so your notion of the liquidity of the market will be wrong. Liquidity is misleading in the same way that price is misleading. The price is the last price that a single unit was traded. Liquidity is the typically thought of as the supply or demand for additional transactions at or near the last market price, or a notion of how stable the price is to fluctuations in supply and demand. The more volume that trades at a price, the more real that price is. An unfilled limit order contains zero price information, so anyone using it as information should be wary. It may be wishful thinking (typical) or a feint (in the case of some HFT strategies) but it is not evidence of a clearing price unless it clears. Of course, the same applies to cryptocurrency prices. I spoke with someone who runs a big desk recently and was pretty surprised at how close he was able to come to "market price" for very large transactions.

Is there any measure of how much was exchanged out of ETH? If you wanted to pump that number up all you need to do is create lots of wallets and transfer ETH amongst them.

googletazer 9y ago

His figure is the volume of ETH / fiat trading, not the volume of ETH transfers. Look @ http://coinmarketcap.com/ http://coinmarketcap.com/

Animats 9y ago
The question is whether you can get cash out of the exchange quickly. How many ETH exchanges could write a check for $10M?
- grandalf 9y ago
  You'd have to use one of the cryptocurrency desks (dark pools), and it would probably take place the same day or the next day.

Animats 9y ago

Right. As Wall Street learned in the 2010 "flash crash" a few years ago, much of the "liquidity" created by high frequency trading is fake. When a big seller sold 9% of the trading volume and wanted real money, the entire market crashed for 36 minutes. [1] https://en.wikipedia.org/wiki/2010_Flash_Crash https://en.wikipedia.org/wiki/2010_Flash_Crash

grandalf 9y ago
> much of the "liquidity" created by high frequency trading is fake Are you referring to the strategy of placing and canceling limit orders that were never intended to clear? I think it's just a matter of your definition of liquidity. If you use a trading strategy that assumes that all limit orders will remain there for 10 full minutes, you might turn out to be wrong, and if so your notion of the liquidity of the market will be wrong. Liquidity is misleading in the same way that price is misleading. The price is the last price that a single unit was traded. Liquidity is the typically thought of as the supply or demand for additional transactions at or near the last market price, or a notion of how stable the price is to fluctuations in supply and demand. The more volume that trades at a price, the more real that price is. An unfilled limit order contains zero price information, so anyone using it as information should be wary. It may be wishful thinking (typical) or a feint (in the case of some HFT strategies) but it is not evidence of a clearing price unless it clears. Of course, the same applies to cryptocurrency prices. I spoke with someone who runs a big desk recently and was pretty surprised at how close he was able to come to "market price" for very large transactions.