Spoofing:
Spoofing is the act of placing an order on a market or exchange which you don’t plan to actually execute. This is done to move the wheels of the market, to influence peer traders. A large bid will tell bots and people it might be time to close short positions, or the inverse. If you have coins for sale, you can manipulate the market into buying them from you at your preferred rate through spoofing, if done correctly. Spoofing is a high frequency trading tactic and in the regular stock market it is wholly illegal under the Dodd-Frank Act.
(Source:
https://www.cryptocoinsnews.com/bitcoin-analyst-identifies-clear-spoofing-pattern-at-bitfinex, Madore, 2017)
What do you think about the dangers of spoofing? Is the price of bitcoin being manipulated using tactics like this?
