Robot trading volume war

[alonshvartsman]

Out of the $13B worth of daily cryptocurrency trading volume, a whopping $6B is fake.

The problem is that traders, when assessing the liquidity of an asset, cannot distinguish between real trades and robo-trades. All they have to go on is the asset’s nominal “trade volume,” which, as we’ve seen, can be easily tampered with. The exchanges themselves have little incentive to provide better transparency—the illusion of high liquidity raises commission fees and brings in revenue.

http://beta.decryptmedia.com/2018/08/31/bot-on-bot-wars/

[1714666771]

1714666771

[1714666771]

1714666771

[1714666771]

1714666771

[butka]

Great read. I didn't know spoofing was present to such an extent. So how can you know for sure what percentage of liquidity is real and what artificially inflated? That's why good sense in trading demands to take seriously only the most immediate bids. All the rest can be inflated.

As a side note: Do exchanges themselves use bots to engineer liquidity?
 

[fritzpaulusha]

Great read. I didn't know spoofing was present to such an extent. So how can you know for sure what percentage of liquidity is real and what artificially inflated? That's why good sense in trading demands to take seriously only the most immediate bids. All the rest can be inflated.

As a side note: Do exchanges themselves use bots to engineer liquidity?
 

All exchanges use bots to increase its daily volume of trade. The reason is that high trade volume moves an exchnage on CMC rank.

[naruto7676]

Great read. I didn't know spoofing was present to such an extent. So how can you know for sure what percentage of liquidity is real and what artificially inflated? That's why good sense in trading demands to take seriously only the most immediate bids. All the rest can be inflated.

As a side note: Do exchanges themselves use bots to engineer liquidity?
 

All exchanges use bots to increase its daily volume of trade. The reason is that high trade volume moves an exchnage on CMC rank.

Great read. I didn't know spoofing was present to such an extent. So how can you know for sure what percentage of liquidity is real and what artificially inflated? That's why good sense in trading demands to take seriously only the most immediate bids. All the rest can be inflated.

As a side note: Do exchanges themselves use bots to engineer liquidity?
 

All exchanges use bots to increase its daily volume of trade. The reason is that high trade volume moves an exchnage on CMC rank.

I think it's right for you to say that because of the investors and traders so the market will decide what market is the price of the coin.

[chocolah29]

Great read. I didn't know spoofing was present to such an extent. So how can you know for sure what percentage of liquidity is real and what artificially inflated? That's why good sense in trading demands to take seriously only the most immediate bids. All the rest can be inflated.

As a side note: Do exchanges themselves use bots to engineer liquidity?
 

All exchanges use bots to increase its daily volume of trade. The reason is that high trade volume moves an exchnage on CMC rank.

That can possibly happen since the competition is high and by looking at CMC you can decide where will you trade. So obviously if exchange A have higher volume than exchange B then traders will of course to exchange A, which we didn't know that we're all deceive. But I guess, not all uses this and if there are some then it's those that some unrated exchange sites.

So apparently, we fell on a trap, while people behind this laugh at us with their evil smirk.

[davis196]

Using trading robots to trade real coins is not fake or illegal.Manipulating the trading volume and liquidity by adding fake transactions is illegal and should be punished.That's why we need more regulations over the cryptocurrency exchange platforms,NOT over their customers(KYC,ID verify,etc.).
I guess that's why cryptocurrencies will never become mainstream.

[Johnyz]

Using trading robots to trade real coins is not fake or illegal.Manipulating the trading volume and liquidity by adding fake transactions is illegal and should be punished.That's why we need more regulations over the cryptocurrency exchange platforms,NOT over their customers(KYC,ID verify,etc.).
I guess that's why cryptocurrencies will never become mainstream.

So many exchanges are doing this, they are manipulating the trading volume for their own benefits. I also believe that cryptocurrency will not hit the major markets because of this problem with the exchanges. Hopefully, higher regulations will be made on every crypto exchanges so we will see real trading volume.

[Pursuer]

you say people with bots using the exchange APIs are trading using those bots and that increases the total volume on exchanges, right? so how in the world is that fake?!!!
those are real people making real trades with real money. they just use another way of contacting the exchanges. you use the web interface by opening the website of the exchange in your browser, those guys use the API calls inside a program. the result is the same and nothing about it is fake.

[demonic098]

Since bot has been mentioned here. I have a question about trading bots are they real??
Back to OP I hope CMC ban those platforms faking their volume because if not then CMC should stop ranking those platforms

[bob3772]

I don't understand how these bots generate fake transactions but are still able to profit? Is it because they are largely present on exchanges with little or no fees? It's so frustrating to look and think a coin is doing well or volume is increasing only to realise it's just fake bot volume.

[StarofBTC]

I understand that people that own exchanges tries to change their volumes to look like they are really bigger than what they currently are but you fail to understand that if an exchange gets big enough that their volume is big so much that they can't themselves change the volume too much.

Look at binance and how much they have, I believe everyone who uses binance can testify that their volumes are incredibly high and volatile and they can't just tamper with that because it would require insane amount of money to change that volume. So what you are saying is only true to exchanges that are low on volumes already and you can just stay away from them.

[k1ng0fBTC]

Great read. I didn't know spoofing was present to such an extent. So how can you know for sure what percentage of liquidity is real and what artificially inflated? That's why good sense in trading demands to take seriously only the most immediate bids. All the rest can be inflated.

As a side note: Do exchanges themselves use bots to engineer liquidity?
 

Yes they do! As that is the way they can increase the volume of trade per day which makes me believe in the article and the fact that it is just more of a fake volume than real volume and one of the things that should not be allowed normally but since it is a decentralized environment, it is a bit hard to curb.

Spoofing, wash trading and some manipulative concerns have been raised several times, but the thing is we are stick with it for the mean time until we start seeing some things in place to help curb such.