Do exchanges manipulate order books, add fake transactions?

[someone111]

How do I know, all orders in the order books are real?

The one who owns server server could easily add some fake orders. As well as add some transactions under last transactions that did not actually happen.

Why? To manipulate the market. To cause artificial pumps. They can buy any time and cause a pump anytime. Then dump for profit. I guess, this works best with smaller capitalized coins? (With big coins, I suppose, if there are at least a legit exchanges, few people would fall for the fake pump.)

This should be very tempting for the owners of an exchange since it's low risk and kinda a money printing machine?

Let's take for example yobit. No names. No faces. I have no way to verify their identity. If I had coins there and they run, I had probably no legal means either?

[CryptoTrout]

they would never do anything like that



( ͡° ͜ʖ ͡°)

[n691309]

How do I know, all orders in the order books are real?

The one who owns server server could easily add some fake orders. As well as add some transactions under last transactions that did not actually happen.

Why? To manipulate the market. To cause artificial pumps. They can buy any time and cause a pump anytime. Then dump for profit. I guess, this works best with smaller capitalized coins? (With big coins, I suppose, if there are at least a legit exchanges, few people would fall for the fake pump.)

This should be very tempting for the owners of an exchange since it's low risk and kinda a money printing machine?

Let's take for example yobit. No names. No faces. I have no way to verify their identity. If I had coins there and they run, I had probably no legal means either?

I think this is possible, it is not impossible but I don't know any case that this really happened because we can't prove it. If you have issue with yobit then this is another things but the manipulation can not be proved.

[Viyamore]

How do I know, all orders in the order books are real?

The one who owns server server could easily add some fake orders. As well as add some transactions under last transactions that did not actually happen.

Why? To manipulate the market. To cause artificial pumps. They can buy any time and cause a pump anytime. Then dump for profit. I guess, this works best with smaller capitalized coins? (With big coins, I suppose, if there are at least a legit exchanges, few people would fall for the fake pump.)

This should be very tempting for the owners of an exchange since it's low risk and kinda a money printing machine?

Let's take for example yobit. No names. No faces. I have no way to verify their identity. If I had coins there and they run, I had probably no legal means either?

Well we no claims on that .also we have no evidence to prove it that they do it. And i don't think that they do fake transactions and order book .but i know that there are a group of traders by any coin to pump or dump it in short they are connected with the developer .
They earn actually every buy and sell transaction and withdrawal so why they will do that .
On yobit ,smart and researching before spending avoid that kind ,learn from your experince or much better try on other exchanges.

[pooya87]

yes of course they do.

especially in the smaller altcoin markets. they can even be paid to do so by the altcoin developer and it has happened before.

even bitcoin was manipulated this way by MtGox back in the time of $1200 rise.

but this becomes harder and more expensive as the market grows and as more competition comes in like multiple big exchanges for bitcoin.

[ImHash]

One solution is to avoid trading any alt coins except the top 10 because all the other ones are just pure stupid and scam traps to accumulate cash overtime.

Second solution is to check and compare all the data with at least 5 other exchanges.

Have a nice day.

[mobnepal]

There are many bots acting and placing orders in trading platform which keep on using certain strategy of placing buy and sell orders. As well as it has been known that few altcoin dev using this bots to pump the 24 hour volume with buying their own sell orders to lure more on their coin. Talking about yobit yes it is highly manipulated by the altcoin owners most of the time. Dont go with every coin that pops up better to trade high market cap coins.

[JeffBrad12]

There are many bots acting and placing orders in trading platform which keep on using certain strategy of placing buy and sell orders. As well as it has been known that few altcoin dev using this bots to pump the 24 hour volume with buying their own sell orders to lure more on their coin. Talking about yobit yes it is highly manipulated by the altcoin owners most of the time. Dont go with every coin that pops up better to trade high market cap coins.

Not closing the possibilities about the evidence of there is a someone is getting trapped by the bot and already buying a coin is already getting pumped by bot.

[levocoin]

I Believe the manipulation is not possible untill the coin developer not  involve in it....

[Serpens66]

I know some BTC exchanges that do manipulate the orderbook, by placing their own orders, which are not covered.

But these are mostly unknown and especially asian exchanges.
If you see an exchange you never heard of/new exchange, but with incredible big volume or with a big orderbook, it is very likely that it is fake volume.

[gentlemand]

Yes. It's a total no brainer. It's not against any laws as far as I know so why wouldn't they? The only ones that we can be pretty sure don't get up to it would be places like Gemini hoping to get to NASDAQ type legitimacy.

[neochiny]

Most likely. Though I think it's the smaller/less reputable sites that do this. I don't think the bigger ones would risk their reputation because when/if caught and proven, it would cause irreparable damage to reputation. They'd end up being known as just one those scammy sites. As for those exchanges that do manipulate their order books, I think it's to lure people with the 'high volume' or so.

[richardsNY]

I personally haven't experienced such activities, but I wouldn't be surprised that exchanges in some cases want to make their orderbooks look healthy and full liquidity while in reality the orderbook is near empty.

[densuj]

Of course it can do, but usualy the markets that use fake volume of transaction are new services. And if there are many traders who make transaction on there, they stop activity fake volume of transaction.

[Cast12]

We probably wouldn't be able to prove it anyways, unless it the volume turned to some ridiculous numbers(maybe around the time the exchanges were created) anyways, legitimate exchanges would not need to do this as they would already have a high number of users using their exchanges since legitimate exchanges(such as poloneix) would be trusted.

[outatime1]

That could happen. Any exchange could be fraudulent like mtgox and cryptsy. If you watch the bitcoin forum in the scam accusation section, it could give you a warning if people suspect fraud.

[th3nolo]

I think if it can happen perhaps in small exchanges, to obtain better benefits I generally do not like new exchanges because this fear

[ethereumhunter]

How do I know, all orders in the order books are real?

The one who owns server server could easily add some fake orders. As well as add some transactions under last transactions that did not actually happen.

Why? To manipulate the market. To cause artificial pumps. They can buy any time and cause a pump anytime. Then dump for profit. I guess, this works best with smaller capitalized coins? (With big coins, I suppose, if there are at least a legit exchanges, few people would fall for the fake pump.)

This should be very tempting for the owners of an exchange since it's low risk and kinda a money printing machine?

Let's take for example yobit. No names. No faces. I have no way to verify their identity. If I had coins there and they run, I had probably no legal means either?

i think it can be do it if the transaction is really small, so market exchange need to do some action to attract buyer and seller to make more transaction, but this will never takes to long, because trader will realize about this.

maybe this is happen in small-middle market exchange because there are just few member will do the transaction.

[streazight]

Most of the exchanges are having the practice of filling up the gaps in price ranges with their own orders. We will able to trade with those orders with no differences. As long as these will not impact us in negative way, we can not call these fake transactions.

Other than this, manipulating prices for pump or dump is most common, an exchange or owner of stocks/altcoins or any high leveraged group may do that.

[BitHodler]

It's a common practice. Exchanges do everything to make their exchange look as promising as possible to attract people to use their exchange to trade on.

Without exchanges adding orders to their order books, the exchange in question would have a messy order book where the spread between ask and bid will be greater than 5% in some cases.