Posts

Cryptomarkets Manipulation: The Rise of Virtual Whales

The average crytpotraders work around opportunities based on predictions. The statistics-based prediction and prediction-based market moves are the very foundation of the average trader's strategy. This is about the trading based on the anticipation of market dynamics. "Market shaping" or "market manipulation' strategies pursue a totally different goal: Their purpose is to impact traders behavior at any given moment. Market shaping strategy is arguably based on a binary methodology that proceeds along the double helix of "Self-Fulfilling Prophecy" and "Self-Defeating Prophecy" principles. By adopting such strategies a market whale acts to promote or to prevent certain beliefs and hence behaviors in and by the average traders who move along a prediction-based line. The manipulator's goal is to dynamically shape the market reality to achieve certain results. The major transformation we are witnessing is the gradual transition from 'whale...

Crypto World: Eppur Si Muove!

Interesting events buried under the daily politainment (political entertainment) lava coming out of Washington D.C. volcano: The Marshall Islands formally launched its sovereign cryptocurrency 'SOV'. Although a tiny republic, this country is the first one that, without being under any foreign sanctions, is launching a sovereign cryptocurrency as its legal tender in parallel to the U.S. dollars. Besides the Venezuelan 'Petro', the success (or failure) of this experience offers a real-world model and an alternative solution for many countries either having serious difficulty with their own disgraced legal tender or are forced to use US dollar.  The Argentine Banco Masvestas abandons for good SWIFT for its international money transfer in favor of a new solution based on Bitcoin. This is the first official bank putting an actual nail in the coffin of U.S. dominated SWIFT. Santander might be the next one.  Russia has developed its own system for financial transfers that ...

Is Cryptocurrency Trading a Rigged Game?

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 car...

How to Understand Cryptomarket Turbolences

There are 3 important market forces whose actions and interactions seem largely determining the cryptomarket rises and falls. They are as follows: A) The generalized actions of *cryptobots* that run reportedly 60% to 80% of the transactions and the overall Order Book activities across all the major exchange platforms;  B) The *Pump or Dump Signals* generated by all size online P&D groups increasingly with 10s of 1000s of members recruited on a daily and/or permanent basis; C) The manipulative maneuvering of media outlets, social media peddlers, celebrity influencers all working as *bounty hunters* for the so-called *team investors* aka P&D online groups. If we carefully keep track of these 3 factors including their combined interactions then we simply discover that both the traditional *technical analysis* and the analysis based on some hypothetical "intrinsic value" of this or that coin or token become largely irrelevant. What should be the guideline for the s...

How to Get Rid of Eductional System Inefficiencies

Ways Blockchain can help: 1) Blockchain can help eliminate paper. 2) No more need for a central authority. 3) Educational institutions will save money. 4) Blockchain-based cryptocurrencies will simplify payment systems. All that helps to progressively get rid of Brick & Mortar educational system blackhole and move towards cost-effective universal e-learning.