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It's not the exchanges who are behind those spikes. Source: someone who is working on a bot doing that kind of things And because of the way the market works,

by 21 9y ago

It's not the exchanges who are behind those spikes. Source: someone who is working on a bot doing that kind of things And because of the way the market works, there is no need to coordinate with anyone else doing it (ie: those spikes are self synchronizing) Those "manipulations" also happen in the traditional markets (forex, ...), but due to liquidity and general sophistication they are much harder to spot, and dangerous to do if you don't know what you are doing (dangerous from a financial perspective, they are perfectly legal).

nosuchthing 9y ago
It's not the exchanges who are behind those spikes. Please. If anyone is in a position to gain the most from market manipulation like that, it's the exchanges and there's a bucket list of evidence and malicious behavior from Bitfinex that would make it very surprising if it was some random outsider causing these types of movements. Bitfinex and Bitmex margin trading volume has increased significantly and for the exchange operators have access to (1) order book + margin call data (2) ability to falsify trades and capital due to no audits With those, it becomes insanely trivial to set some bait let the fish bite and simply drain the water or pump it back in on a whim because the order book is just a database and there's no accountability or auditing to keep the market exchanges honest.
- hw 9y ago
  There's also allegations about exchanges like Bitfinex where the owners/management trade on their own exchanges [0]. With insight on order book and people's stop prices there's an obvious conflict of interest there, as one can easily go stop hunting and manipulate prices. It's an unregulated market, and exchanges want to keep it that way (like how Binance's moving operations to Malta) [0]: https://medium.com/@bitfinexed/wash-trading-bitcoin-part-ii-who-and-why-is-someone-wash-trading-on-bitfinex-e1c7b5e0b3bb https://medium.com/@bitfinexed/wash-trading-bitcoin-part-ii-...

by 21 9y ago

nosuchthing 9y ago

It's not the exchanges who are behind those spikes. Please. If anyone is in a position to gain the most from market manipulation like that, it's the exchanges and there's a bucket list of evidence and malicious behavior from Bitfinex that would make it very surprising if it was some random outsider causing these types of movements. Bitfinex and Bitmex margin trading volume has increased significantly and for the exchange operators have access to (1) order book + margin call data (2) ability to falsify trades and capital due to no audits With those, it becomes insanely trivial to set some bait let the fish bite and simply drain the water or pump it back in on a whim because the order book is just a database and there's no accountability or auditing to keep the market exchanges honest.

hw 9y ago
There's also allegations about exchanges like Bitfinex where the owners/management trade on their own exchanges [0]. With insight on order book and people's stop prices there's an obvious conflict of interest there, as one can easily go stop hunting and manipulate prices. It's an unregulated market, and exchanges want to keep it that way (like how Binance's moving operations to Malta) [0]: https://medium.com/@bitfinexed/wash-trading-bitcoin-part-ii-who-and-why-is-someone-wash-trading-on-bitfinex-e1c7b5e0b3bb https://medium.com/@bitfinexed/wash-trading-bitcoin-part-ii-...