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Showing posts from September, 2018

What does it take to generate a significant crypto FOMO wave?

FOMO, or fear of missing out, is defined as a "Pervasive apprehension that others might be having rewarding experiences from which one is absent, FOMO is characterized by the desire to stay continually connected with what others are doing." (Wikipedia)

Here is the break down of a crypto FOMO wave:

1- Ad hoc and well-publicized interviews followed by huge bots- operated retweets, Reddit messages, LinkedIn posts, etc. 

2- News leak of a "new product" bringing about an unclear "disruption", followed by bots and humans social media amplification. 

3- A huge wave of 'wash trading' to generate the appearances of a sudden expanding market liquidity. 

4- A massive 'swarm layering' operated in one of the main crypto exchanges across the world to create fake 'support'. 

5- 'Arbitrageur' bots push to flatten the market prices upward while 'front-runners' fill up their bags as never before. 

HFTs and their armies of bots are indeed th…

Are HFT-based market manipulations the endgame for cryptocurrencies?

The short answer is, not quite yet. The long answer requires more words. 
We should agree the main cause of the wild volatility of the cryptocurrency markets resides in the massive use of bots and hashtag#HFT. This statement becomes clear if we consider that more than 80% of all crypto trades are reportedly conducted by bots versus the 50% on the US stock market (40% in Europe and Japan). We may argue that HFT helps to increase the liquidity and to stabilize the crypto markets. Yet that is not entirely confirmed by observations and analysis. In fact, HFT offers a suitable context for more complex and stealthy methods of market manipulations based on 'swarm layering' and systematic wash trade. These reckless manipulation techniques offer also an opportunity for mutual attacks by followers of cryptocurrencies in close competition. The overselling of hashtag#ETH and hashtag#LTC

A Decade of Cryptocurrency History to the Chagrin of Gloomy Naysayers

The Bitcoin network was created on January 3, 2009 with the release of the first Bitcoin client, wxBitcoin, and the issuance of the first Bitcoins. The major revolutionary merit of cryptocurrency's underlying technology has been to create a reasonably solid solution in the world of bits and bytes for what goes as "double spending". And by doing this it has brought a good deal of sunshine to what has traditionally been seen as the arcane called *fiat currency*: Nowadays, an increasing number of people across the planet easily understand that money as we know it, is nothing more than a politically controlled and manipulated system for storage, transfer, and accounting of value. Many realize there is no heavenly magic behind the money they use on a daily basis. Once the enigma is gone, what remains is just a simple historical human invention: A technology called 'money' that, like many other inventions, could be redesigned, transformed and improved to better serve t…