[2017-08-09] Unregulated Bitcoin ‘Wild West’ Gives Rise to Spoofy

[sheld0n]

Spoof orders, or placed market trade orders that are not actually intended to be executed, are part of the rampant manipulation of traders on cryptocurrency exchanges. Trading into your own buy or sells is also illegal in the regulated financial markets, and it is suspected that this behavior has become more rampant in order to help Bitcoin price manipulators cut potential loses from their dubious activities. They also serve to sway trader behavior with massive sell and buy walls which are suggested to be the work of an individual or group, perhaps even the exchanges themselves going under the pseudonym of Spoofy. Article on Bitcoinist

[iamTom123]

There is no question that there are many kinds of manipulations being done in the cryptocurrency market. The power to influence the value of any investment vehicle is a very attractive proposition and this is being carried out either by individuals or group of people banding together for one purpose.

Speculations can happen under a regulated market much more in a market where the government has yet to step-up and impose laws and rules for everyone to follow. Unfortunately, we are dealing here with people who are so creative enough that they can find ways and means to get the results they envision.

Now, the next question is this: Will spoof trading be the main reason why some form of regulations have to be in effect in all cryptocurrency exchanges?

[Rahar02]

Since there's no regulations about it, there's no way we can track this behavior especially from exchanges itself.
I mean, exchanges could get pretty huge profits by doing this spoof things. It's a common problem from the beginning as they are who have invested in bitcoin in the early development > have so many bitcoin or so much money on their pockets (whales) which could easily manipulate market price by doing it together. However, I believe that bitcoin users have been used to this behavior and anyone could get money from them (whales) if they do a mistake.