Dark side of cryptocurrency: The role of trade in market handling
Cryptic currencies, such as Bitcoins and Ethereum, have gained great popularity in recent years and their prices are very different in the market opinion. In the midst of these digital assets, however, the darker page of the currency encryption market has created in the midst of these digital assets. Market handling, a form of trafficking consecrated consecrated, which uses price differences to achieve other activities, is increasingly associated with a large number of trading.
What is the market handling?
The manipulation of the market concerns any activity or strategy that artificially affects security, such as assets, manipulate the market. This can be achieved by various means, including the dissemination of false information, the use of information about consecrated information or other forms of market technology.
Number of trades tasks in market handling
Trading is often referred to as one of the key indicators that should not rely on investment decisions. However, a growing research team suggests that the amount of trading can also be used to identify market handling. Thus:
- This creates the effect of the “echo chamber” where most stores strengthen and strengthen the idea that there is no trend or model.
- Increased noise : The amount of trading can cause an increase in noise activity that can be used to strengthen false signals and changes in artificial prices. For example, if a small group of merchants buy a large number of bitcoins, their operation can cause speculative VIMP, leading to a rapid increase in prices.
- If the trader’s purchasing power is growing rapidly, it may indicate that they use new investors to support their own stores.
Case studies: Cryptomen market manipulation
Several cases of high profile have emphasized the role of trading in crypto market handling:
* Coinbase : In 2019, a study by the Minister of Justice in New York found that Coinbase did not reveal millions of dollars of unannounced transactions and information on the consecrated consecrated information. The company has been charged with a large number of manipulation of bitcoins and other cryptocurrencies through shops.
* Binance
: In 2020 it turned out that Binance, one of the largest exchange cryptocurrencies in the world, has been used by an artificially complex system of manipulating trading to increase prices of some funds. This includes the use of fake or manipulated market information to increase the price of certain coins.
Conclusion
The ratio between trade volume and market handling is complex and diverse. Although a high number of stores may be used as a signal, they should not rely on investment decisions. The use of market handling trading emphasizes the need for vigilance and openness in the cryptom market.
Regulatory authorities, investors and traders must cooperate to reveal and prevent market handling. This includes:
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- Increased transparency : Investors should be encouraged to use several sources of information in their investment decisions.
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