Showing posts from November, 2018

Crypto Crash: Beyond Crydiving and Voodoo Dolls

BTC, LTC and a few other mineable coins are all good vehicles for value transfer. This has been proved time and again. They currently allow for around $200B dollars transfer every single month. They work efficiently as a unit of account as well. The real problem is how effectively they perform as storage of value in the mid to long term. Extreme volatility is what we are globally witnessing across all exchanges. Everybody agrees on the diagnosis, nobody offers a convincing culprit. However, in my view, the market manipulation bears a major responsibility. Right now the exchanges (possibly except Gemini) are no man's land where all doors are open to reckless crypto bot launchers and P&D gangs. Add also the internecine warfare of tokens and coins hooligans against each other across both social media and exchanges. Can we put some order into the chaos? Yes. We can experiment by forcing the exchanges to abide by the international regulatory rules. This should be done with 2 initial

Crypto Crash: When Market Manipulations Generate Disaster

Based on the behavior, we have to distinguish between 2 main classes of bots across the cryptomarkets: - Traders - Manipulators The first group operates based on the anticipation of trends and patterns by feeding on historical and real-time data. The 2nd class of bots follows increasingly a swarm logic that serves a different purpose: Poisoning the market "wells" to feed the first category of bots with real-time fake data. By serving such strategies, these bots constantly act 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. This is a de facto poker game: Trading has become gambling!! Given that these hostile bots are run by rival Pump & Dump gangs and franc tireurs across highly fragmented and unregulated exchanges, there is always the possibility of triggering either a virtuous or vicious cycle that could become very powerful via an echo chamber effect.