4 ms·

My guess is honestly just exchanges trying to get closer to the top of sites like coinmarketcap..

dragontamer 5y ago
I mean, its win/win for the exchanges though? Lets say rich person X wants to conduct large-scale wash-trades to artificially increase (or decrease) the price of [insert cryptocoin here]. By conducting it on Exchange-Foobar, Foobar's traffic goes up, while rich person X gets the price change they want. Win-win for both parties. EDIT: Remember: exchanges win on volume. They want more trades, they don't care if the value goes up or down.
- thebean11 5y ago
  Yes if it's a third party doing it, it's especially a win-win for the exchange as they are getting paid fees on all that transaction volume. I kind if assumed it was the exchanges themselves faking it. Wash trading without colluding with the exchange is pretty expensive.
  - dragontamer 5y ago
    All exchanges, even legitimate ones, offer discount packages on anyone who has high volume. Ex: Interactive Brokers (a legitimate online exchange for stocks) hit it big with its monthly-subscription model: $$subscription / month $20 / for severely discounted trades (fractions of a penny per trade). https://www.interactivebrokers.com/en/index.php?f=1590&p=stocks2 https://www.interactivebrokers.com/en/index.php?f=1590&p=sto...
    - thebean11 5y ago
      Yeah, I get it, but unlike stock transactions crypto exchanges generally take a % of volume traded unlike stock exchanges which take a per-transaction fee instead (I think options might be an exception where there's a per-contract fee..not sure).
      - dragontamer 5y ago
        If you're about to dump $10,000 to $100,000 worth of fees upon an exchange per month so that you can perform price manipulation (or whatever), you give the exchange a call. They'll answer. You explain to them that you want to give them $50,000 / month (or something) for 10-million trades/month or whatever. If they let you, you do it. If they don't, call up another exchange and give them the same offer. ------- Its called business. When the $$$ amounts go up beyond a certain amount, you make it worth their while to treat you specially. They want the volume, you want the trades. Old-school business, just talk with them and things happen.

I mean, its win/win for the exchanges though? Lets say rich person X wants to conduct large-scale wash-trades to artificially increase (or decrease) the price of [insert cryptocoin here]. By conducting it on Exchange-Foobar, Foobar's traffic goes up, while rich person X gets the price change they want. Win-win for both parties. EDIT: Remember: exchanges win on volume. They want more trades, they don't care if the value goes up or down.

thebean11 5y ago
Yes if it's a third party doing it, it's especially a win-win for the exchange as they are getting paid fees on all that transaction volume. I kind if assumed it was the exchanges themselves faking it. Wash trading without colluding with the exchange is pretty expensive.
- dragontamer 5y ago
  All exchanges, even legitimate ones, offer discount packages on anyone who has high volume. Ex: Interactive Brokers (a legitimate online exchange for stocks) hit it big with its monthly-subscription model: $$subscription / month $20 / for severely discounted trades (fractions of a penny per trade). https://www.interactivebrokers.com/en/index.php?f=1590&p=stocks2 https://www.interactivebrokers.com/en/index.php?f=1590&p=sto...
  - thebean11 5y ago
    Yeah, I get it, but unlike stock transactions crypto exchanges generally take a % of volume traded unlike stock exchanges which take a per-transaction fee instead (I think options might be an exception where there's a per-contract fee..not sure).
    - dragontamer 5y ago
      If you're about to dump $10,000 to $100,000 worth of fees upon an exchange per month so that you can perform price manipulation (or whatever), you give the exchange a call. They'll answer. You explain to them that you want to give them $50,000 / month (or something) for 10-million trades/month or whatever. If they let you, you do it. If they don't, call up another exchange and give them the same offer. ------- Its called business. When the $$$ amounts go up beyond a certain amount, you make it worth their while to treat you specially. They want the volume, you want the trades. Old-school business, just talk with them and things happen.