Market Manipulation & Trading Bots

in #bitcoin6 years ago

Researchers have found evidence that two trading bots, named Willie and Markus were responsible for market manipulation on the Mt Gox exchange in 2014. To make matters worse, they claim that these bots traded with Bitcoin they didn't have and sent signals of healthy market growth.
Price Manipulation in the Bitcoin Ecosystem - https://www.sciencedirect.com/science/article/pii/S0304393217301666

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When Bitcoin price drops and being pushed down without any news or FUD, bots and manipulation really makes sense. Great post!

Here's a valuable analysis on Stellar Lumens (XLM), would love to hear what you think about this project

https://steemit.com/cryptocurrency/@benkalashnikov/stellar-lumens-xlm-analysis-80-potential-profit

Screen Shot 2018-01-23 at 00.14.54.png

me and the graphics are not compatible! Maybe @arturomdg will appreciate that much better!

Haha cool stuff!

indeed.

I think Catherine and Arturo have a thing for each other guys... lol

good to know and to be informed

my point of view this time little dip 8000$ to 7000$ then go up and break 14000$

I'm worried that the AI ​​and the advances that come from it can be both positive and extremely negative. It is becoming increasingly important to protect all electronic devices connected to the internet! Hackers have already become aware that there are a lot of money to be fetched here and the danger of being caught is not nearly as big as a hacked bank account!

as far as I am concerned, blockchain is a nearly impossible to hack technology!

Thanks very good post !!!!

Awesome Work!

Keep it up!!!

@cryptoinvestinfo

Haha

That's what I though also. The block chain can't get hacked but everything else can. We have a long way to go.

but they still are here to stay!

I guess the greatest study in life is not how things should be but how they really are. :)

Not True.. There have been vulnerabilities in crypto coins.. Block-chain implementation is still done by humans.

As I see it, the problems were about stealing the private keys, as for what is "hacking" the blockchain, you would need to hack every server that support the blockchain...

high rate transactions, btc fluctuation, is the way to make money without the trace.

is a strategy that they have yes, but most of the investors end up selling for panic, which they shouldn't :)

You're right, actually thinking about it is normal... dont worry sir

Never listen to the media then :)

haha the idea is to stay informed! :D (so no media for me!)

good girl :)

I agree don't go with the media, however the market manipulators use news to get in and out of their positions so it is good to check the news just to see whether it is being used to manipulate people currently or not.

Good news after a massive bull move is most likely the market manipulators/ whales trying to get more people to buy so that they can sell off their crypto at the new high. Bad news after a massive crash/correction is probably to help them get out of their positions.

the thing is that 99% of the news are things that we don't really need to know, you will know about something when it is really important, the rest is trash information that takes away time and energy

You say this as if "the media" is all the same, and is all equally untrustworthy.

official media :) newspaper, TV and so on.

Sure ignore TV, but newspapers and print media in general take journalism very seriously and are more reliable than TV or most of what you're likely to encounter online. WaPo, NY Times, The Guardian, Spiegel, The Economist etc. are all solid and have been doing extremely valuable work, especially in the last year. Do they make mistakes? Of course, no single source is perfect, but that's why you read more than one source.

right..see my blog on why silver (as bitcoin) is about to surge.

I guess as long as there is money to make, we will see some form of automated trading. I am not against it, but there's clearly cases of market manipulation where the bots are used to increase coins price [or lower it].

It really makes you wonder if this can be attributed to the rapid (moonshot) rise of Bitcoin.

We need efficient decentralised exchanges to prevent market manipulation by bots.

We need to get the bots on Steemit under control first!

For one, I am EXTREMELY surprised decentralized exchanges aren't more popular. I mean, WTF, with the negative history of centralized markets in mind and the fact that you run the risk of losing all your money on every centralized exchange you put money onto, what could possibly be more attractive than exchanges where you own your own keys? Why aren't they flourishing already?

Please someone explain

Decentralised exchanges can't handle as many transactions/second as centralised ones at the moment.


Here is the CEO of Binance explaining his view of the company. He ultimately would want to become a DEx but as of right now it is not possible to manage the kind of volumes Binance deals with daily.

Oh, I see! Darn it. Yeah, I imagined the problem was something like that. I'm not a programmer, neither am I up to speed about the technicalities behinds things like DEXs. I hope they solve it, and soon! Because we have the government climbing up our legs here.

Yes, but please take a look at RadarRelay. I discovered it recently and it's absolutely brilliant: the concept of "modular exchange". Basically, everybody holds crypto in their hardware wallet and only the order matching is done centrally; with many alternative matchers possible. Then the actual exchange happens wallet to wallet directly!!!

Interesting, I'll look at this exchange.

BitShare DEX can handle all Binance's volume and more without problems...

I'm all for decentralization but that's not necessarily the answer here.

What we need are exchanges that are open source and therefore publicly audit-able to prevent such blatant manipulation of the markets through shoddy engineering.

Decentralized exchanges also allow API programming. I guess they can enforce stricter rules to prevent market manipulation... and mempool spamming.

Sad true :(

Totally agree

tether does the same thing now, really. There's literally no way to prove it doesn't. Just a reason not to leave funds on an exchange.

also... buy bitshares!

Artificial intelligence and machine learning systems are taking over the whole trading... This is something we have to accept... I am not talking about a scam bots like in this case, but about all new projects rising on the market and are based on AI trading... I was writing about few of them in ICO phase during last few months...

Yep. They often stick out like a sore thumb too. People need to be extra careful when it's apparent that a bot is trading in the market.

Don't worry. These bots will cause such a great commotion in the very near future in my opinion in markets, as they have a lot to do with where prices are today already. So much of the gains in the markets over the past year have been too good to be true. These bots are great while in a decentralized system like this because they dealing with a community of people much more so than a traditional corporate venture. Manipulators with options and these scam bots will get there faces melted if they try to play these games as more people become more invested for the long haul in my opinion. I agree @kriptonoob, but there are also some other dynamics in play.

really, and how AI explains btc falling down when everyonone investing in it

Yeah bro, Hedge funds, and Wall street is trading with Quants etc, for long long time already, and they are making huge money this way. So like you say: we have to accept it, whether we like it or not....

Trading bots are rife across the crypto sphere and it’s hardly surprising as it’s still a Wild West of trading! Regulation will reduce this but will have a detrimental effect on the wider world of crypto!

How is all this “regulations” going to be implemented?

Simple. Regulate exchanges.

Great question. Govt got they hand out is all we know right now. lol

ha ha ha funny

Bitcoin traders will have to be careful. I think that these bots stimulate the general sentiment of buyers in the market.

So what you're saying here, is that the bots were two black guys from the south in the 1930's?

Lol...very good! ;-)

Thanks very good post !!!!

Awesome Work!

Keep it up!!!

@cryptoinvestinfo

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