Bots Are Manipulating Price of Bitcoin in ‘Wild West of Crypto’

[Scout]

WSJ: Bots Enable Pump-and-Dump Schemes

https://www.ccn.com/bitcoin-price-manipulated-by-cryptocurrency-trading-bots-wsj/

This practice of faking orders and then canceling them is known as “spoofing,” the purpose of which is to create the impression that supply or demand for an asset is higher than it actually is.

Edited October 3, 2018 by Scout

[FOOD]

regulation......

[HazzaHat]

43 minutes ago, Scout said:

WSJ: Bots Enable Pump-and-Dump Schemes

https://www.ccn.com/bitcoin-price-manipulated-by-cryptocurrency-trading-bots-wsj/

This practice of faking orders and then canceling them is known as “spoofing,” the purpose of which is to create the impression that supply or demand for an asset is higher than it actually is.

It is an unfortunate side effect of the free trading platforms currently in operation providing exchange services.

[Kpuff]

It is generally bad but it does have some upsides as well like when the price dropped I bought a crap ton of it

[keybordem]

I honestly believe that bots prevent the crypto market from functioning and really growing. They were not introduced into normal world stock markets till very well after these markets already became established with stable regulations. Sure there's abuse in traditional markets, but now in crypto anyone with a cell phone can run a trading bot. The entire market is practically bots anymore. 

The market being so tiny the liquidity is just not there like a real market to absorb the bot actions of millions of traders and gets compounded by the facts that crypto markets are 24/7/365. There's no overnight or weekend or holidays to cool things off or slow them down.

On a side note those bot APIs seem to be a security issue on top of spoofing. 

Edited October 4, 2018 by keybordem