Is cryptocurrency trading a rigged game? Can it survive the AI-powered *market shaping*? Can criminal probe and regulatory interventions make any difference? How does the rise of cryptobots impact the markets? and what is the relationship between cryptobots and P&D online groups?
During my most recent empirical studies, I realized that bots use two techniques to heavily impact the market according to a dynamically adjustable implementation plan:
a) HFT with a massive use of both fake buy and sell traffic as well as "wash trading" by single account holders, which inevitably require access to a very large fund and/or some significant "assistance" by the trading platform.
b) HFT with the same effects as above but implemented by using *swarm* approach that generates a gigantic *virtual cryptobot* or Virtual Whale without any large fund. The latter seems the result of a very close integration between P&D schemes and HFT. This integration is reinforced by a carefully elaborated media and social media tactics and strategies to *shape the markets*.
Here is the question:
Can a US Justice Department Criminal Probe into price manipulation or any regulatory intervention rein in this sophisticated "mechanism"? What do you think?