Bots Manipulating Trading on Crypto Exchanges?

Certain crypto exchanges have been experiencing a high amount of trading manipulation..


According to research by Cornell Tech and other universities, certain crypto exchanges have been experiencing a high amount of trading manipulation with the help of special arbitrage bots.

Autonomous trading programs are being used frequently in some decentralized exchanges to obtain priority ordering, allowing for practices like ‘front running’ – where traders can see others’ orders and beat them to these same trades and profits. This study raises more questions and spells potential trouble ahead for crypto exchanges that are already reeling under suspicions about inflating trading volumes.

So far, BITCOIN seems to be trading lower even though it is holding above $5,000 for today. However, it remains to be seen how this report could impact cryptocurrencies’ trading in the long term.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers