Beyond Trade Spoofing and Layering: CRYPTO SWARM LAYERING

Those who follow closely the cryptomarkets should know that it is "against the law to spoof, or post requests to buy or sell futures, stocks and other products in financial markets without intending to actually follow through on those orders." Anti-spoofing is indeed part of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act passed on July 21, 2010.
But the reality of crypto trading in 2018 has gone way beyond our lawmakers' imagination by creating what I call "swarm spoofing," or more appropriately "swarm layering."
Swarm layering uses a mixture of two techniques to achieve its market manipulation objectives.
One procedure is based on human trade agents structured in ad hoc online groups via specialized media and social media facilitation.
The other method is based on a massive utilization of cryptobots in the exclusive context of High-Frequency Trading (HFT).
What distinguishes both techniques is their use of a logic based on Swarm Intelligence, that is, the collective behavior of relatively decentralized and self-organized small and very small trading agents made of individual humans and bots or a variable combination of them.
The tricky part is the hiding “optical cloak”  effect that is obtained through the use of ad hoc and triggerable simplistic simultaneous collective behaviors of hundreds and even thousands of human and/or cryptobot traders. These autonomous collective behaviors make it impossible for any known regulatory framework to specifically pinpoint the market manipulation perpetrators in order to ban and penalize them individually.


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