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You can't if there's no actual support for that high price from the community. And that's what the whole article is about. Without the support, the price just c

You can't if there's no actual support for that high price from the community. And that's what the whole article is about. Without the support, the price just crashes to the natural levels, as soon as people see some idiots trading at much higher prices than everywhere else. Which is exactly what happened. Two independent bots that got caught in each other's lies and spiked the price makes at least some sense. One bot trading with itself makes no economic sense.

foepys 9y ago
It does make a lot of sense. Especially in markets without any "natural value" like cryptocurrencies. So much sense that there is even a word for it: Wash trading https://en.wikipedia.org/wiki/Wash_trading https://en.wikipedia.org/wiki/Wash_trading
- ycombobreaker 9y ago
  Wash trading is any trading with no change in beneficial ownership. The type of price "manipulations" being discussed are potentially the result of wash trading, but fundamentally the goal is momentum ignition, so the igniter can coax other participants to bid large size at a high price (or buy at even higher prices), and sell to them. You don't have to buy from yourself to show the world that you are buying new highs. Momentum ignition and wash trading may overlap in a single circumstance, but they are distinct concepts.
dustingetz 9y ago
i don't think there is a natural crypto price which is what is being exploited here
chrisco255 9y ago
I don't know why anyone hasn't mentioned the hours long confirmation delays for BTC transactions. It's not possible to effectively arbitrage (without exposing yourself to risk in the form of hourly price changes) between exchanges. You can't flip BTC that fast at the moment.
- cik2e 9y ago
  You can use a faster blockchain to move between exchanges if they both support it. But there are still the inflated confirmation requirements for withdrawals, that most exchanges impose, to slow you down. Not to mention daily withdrawal limits.

foepys 9y ago

It does make a lot of sense. Especially in markets without any "natural value" like cryptocurrencies. So much sense that there is even a word for it: Wash trading https://en.wikipedia.org/wiki/Wash_trading https://en.wikipedia.org/wiki/Wash_trading

ycombobreaker 9y ago
Wash trading is any trading with no change in beneficial ownership. The type of price "manipulations" being discussed are potentially the result of wash trading, but fundamentally the goal is momentum ignition, so the igniter can coax other participants to bid large size at a high price (or buy at even higher prices), and sell to them. You don't have to buy from yourself to show the world that you are buying new highs. Momentum ignition and wash trading may overlap in a single circumstance, but they are distinct concepts.

dustingetz 9y ago

i don't think there is a natural crypto price which is what is being exploited here

chrisco255 9y ago

I don't know why anyone hasn't mentioned the hours long confirmation delays for BTC transactions. It's not possible to effectively arbitrage (without exposing yourself to risk in the form of hourly price changes) between exchanges. You can't flip BTC that fast at the moment.

cik2e 9y ago
You can use a faster blockchain to move between exchanges if they both support it. But there are still the inflated confirmation requirements for withdrawals, that most exchanges impose, to slow you down. Not to mention daily withdrawal limits.