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SEC's argument that spot BTC market cannot be trusted is quite ironic considering BTC is perhaps the only free market left, and all exchanges publish all trades

by nnx 4y ago

SEC's argument that spot BTC market cannot be trusted is quite ironic considering BTC is perhaps the only free market left, and all exchanges publish all trades and order flow in real-time for free, for everyone... which is so transparent compared to traditional exchanges selling order flow to HFT firms.

wmf 4y ago
all exchanges publish all trades and order flow in real-time for free, for everyone Why do you believe that? Exchanges have been caught lying and cheating multiple times.
- nnx 4y ago
  There's no need to believe, it's all public data and many thousands traders/bots are using those to trade every day... if the orders were fake it would be known and arbitraged very quickly. Talking here about all the major exchanges with actual volume (Coinbase, FTX, Binance, etc) of course might not apply to some scammy third-tier exchanges with no volume.
  - Galanwe 4y ago
    > There's no need to believe, it's all public data Well I don't think you quite imagine the sheer amount of requirements a regulated exchange has to through. Though I don't think major crypto exchanges (Binance, Coinbase,...) are blatantly cheating per se, they are still light years away from having the same level of compliance as traditional SEC regulated exchanges. > if the orders were fake it would be known Also, you seem to only consider obvious fraudulent behaviors, but there are literally millions of ways to exploit order flow when you're an exchange or broker, that are completely impossible to see from the outside.
- bouncycastle 4y ago
  Not decentralized exchanges, like Uniswap and Sushi, where you can see everything in real-time.
  - JumpCrisscross 4y ago
    > Not decentralized exchanges, like Uniswap and Sushi, where you can see everything in real-time None of these trade BTC/USD spot. Referencing them just punts the question to the legitimacy of UNI and ETH spot.
    - bouncycastle 4y ago
      WBTC/USDC is essentially BTC/USD spot. Think of it as depositing BTC and USD into a centralized exchange, but having all the trades on the on-chan.

by nnx 4y ago

wmf 4y ago

all exchanges publish all trades and order flow in real-time for free, for everyone Why do you believe that? Exchanges have been caught lying and cheating multiple times.

nnx 4y ago
There's no need to believe, it's all public data and many thousands traders/bots are using those to trade every day... if the orders were fake it would be known and arbitraged very quickly. Talking here about all the major exchanges with actual volume (Coinbase, FTX, Binance, etc) of course might not apply to some scammy third-tier exchanges with no volume.
- Galanwe 4y ago
  > There's no need to believe, it's all public data Well I don't think you quite imagine the sheer amount of requirements a regulated exchange has to through. Though I don't think major crypto exchanges (Binance, Coinbase,...) are blatantly cheating per se, they are still light years away from having the same level of compliance as traditional SEC regulated exchanges. > if the orders were fake it would be known Also, you seem to only consider obvious fraudulent behaviors, but there are literally millions of ways to exploit order flow when you're an exchange or broker, that are completely impossible to see from the outside.
bouncycastle 4y ago
Not decentralized exchanges, like Uniswap and Sushi, where you can see everything in real-time.
- JumpCrisscross 4y ago
  > Not decentralized exchanges, like Uniswap and Sushi, where you can see everything in real-time None of these trade BTC/USD spot. Referencing them just punts the question to the legitimacy of UNI and ETH spot.
  - bouncycastle 4y ago
    WBTC/USDC is essentially BTC/USD spot. Think of it as depositing BTC and USD into a centralized exchange, but having all the trades on the on-chan.