Can massive swarm cryptomarket manipulations unleash catastrophic unplanned consequences?

The short answer is yes. The long answer needs a few clarifications.

We can distinguish between at least 2 categories of bots operating across the cryptomarkets: - Trader bots - Manipulator bots 

The first category has a modus operandi based on complex predictive modeling, that is, the anticipation of trends and patterns. The 2nd class of bots follows a swarm logic and pursues a different goal: Its purpose is to feed the first category of bots with fake data. By adopting such strategies, this class of bots constantly acts to promote or to prevent certain trends and patterns and hence behaviors in and by the average trader bots (and humans) that move along a predictive line of reasoning. 

Given that these bots are run by rival and non-coordinated groups and individuals across structurally hyper-fragmented and unregulated cryptomarkets in a High-Frequency Trading context, there is always the possibility of triggering either a virtuous or vicious cycle that could become very powerful via an echo chamber effect. The end results are always unexpected, staggering and extremely difficult to anticipate unless we invent and deploy a 3rd category of bots: The market Guardian Bots!

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