Sunday, May 27, 2018
Cryptomarkets Manipulation: The Rise of Virtual Whales
The average crytpotraders work around opportunities based on predictions. The statistics-based prediction and prediction-based market moves are the very foundation of the average trader's strategy. This is about the trading based on the anticipation of market dynamics. "Market shaping" or "market manipulation' strategies pursue a totally different goal: Their purpose is to impact traders behavior at any given moment. Market shaping strategy is arguably based on a binary methodology that proceeds along the double helix of "Self-Fulfilling Prophecy" and "Self-Defeating Prophecy" principles. By adopting such strategies a market whale acts to promote or to prevent certain beliefs and hence behaviors in and by the average traders who move along a prediction-based line. The manipulator's goal is to dynamically shape the market reality to achieve certain results. The major transformation we are witnessing is the gradual transition from 'whale' (needing large funds and/or particular facilitation to operate) to 'virtual whale' (need for large funds replaced by applied 'Swarm Intelligence'). The emergence of 'virtual whale' extremely complicates the market intelligence and surveillance, and tends to blur the line between legal versus illegal trading practices. Stay tuned for more analysis on this topics.