Nice project.
I'm sure someone would have mentioned that following top traders is a bit of a flawed strategy in crypto though?
As a simple example....
I create 10 000 accounts, 5000 short BTC and 5000 go long BTC for one week. At the end of the week 5000 will be right. With those 5000 I go short BTC with 2500 accounts for the next week and long with 2500. At the end of week 2, 2500 accounts will have got BTC direction right for 2 weeks in a row. Then with those 2500 I go short BTC with 1250 accounts and long BTC the next week with 1250...
It will only cost me trading fees but at the end of three months I will have 1 account that has got the BTC direction right every single week for 3 months in a row.
Then I reveal myself and say hi, my name's Bob this is my trading account who wants to follow me?
People will be like 'wow he predicted the Bitcoin price correctly every week for 3 months in a row so far... '
Hello, legit concern!
I will not answer totally about how this can be addressed but this might helps...
First of all if someone can create 10 000 accounts on our platform without trigger our attention there is a problem.
Then you said you will short 5000 btc and go long with 5000 btc, so you need 10 000 BTC to achieve your goal. I really think someone with that kind of money has better to do than trying to cheat a system to later gain a relatively small reward compare to the amount needed. Because to do that you will have to pay a huge amount of fees. If you long and short that much BTC you will lose a lot of Bitcoin whatever is it going down or up...
Of course, I know this what a metaphor!
This is a legit question because it can be done with much lower numbers, maybe even 10 accounts and 10 BTC... You can achieve a really high performance on one account.
So yes it's possible, but what will be important for any users who want to follow you, is consistency, volume and the history of your account.
Automatically if you have to make 10 accounts and divide your 10 bitcoin, you will get way smaller volume than any other good traders on the platform. I would rather follow someone with skin in the game with real volume.
I can add this: When you want to use your "winning account" to trick users on CoinDash, you will have no choice to perform incredibly well to stay at the top.
I really think some people will really try to trick the system
Even CoinDash Team will make some test, but I really don't think long term it will be a real problem, for the reasons evoqued and because the reward seems to be small compare to the effort needed...
There is MANY other way to really prevent that, we will of course take all the necessary measures on the go to prevent this type of problems.
