Why exchanges constantly expose you to the risk of losing your capital.

[Tytanowy Janusz]

Almost every listing looks like that:

Those spikes on first candle in most cases happens in first 1 min - 5 min. Does exchanges really don't know how to prevent their users from buying coins 100 times higher by market buy? If chart is that high means that someone bought that high and someone sold that high. That's crazy and so easy to prevent. None need to invent wheel. All they need to do is go and take a look how every day starts on regular assets on stock markets. To prevent that situation every day starts with 30 - 120 min fixing (up to exchange). (f.e. 120 min is for New York Stock Exchange)

Fixing (source: https://www.investopedia.com/articles/investing/091113/auction-method-how-nyse-stock-prices-are-set.asp):
The Opening Auction
While the NYSE’s official market opening time is 9:30 a.m. EST, orders to buy and sell securities can be entered as early as 7:30 a.m. In particular, the two types of orders that are accepted before the market officially opens are Market on Open (MOO) and Limit on Open (LOO). MOO orders seek to purchase shares at the current market price at the time the market opens. LOO orders seek to purchase a specific number of shares at a specific price when the market opens. If the requested price is not met, the trade does not take place.

The first data stream of the new trading day includes a reference price for each security. This price generally matches the previous night’s closing price. The data stream also includes data regarding the current imbalance between buy and sell orders and prices. By publishing this data, NYSE gives traders the opportunity to adjust their trades in order to match up buy and sell orders.

Data is published every five minutes until 9:00 a.m. From 9:00 a.m. until 9:20 a.m., it is published at one-minute intervals. For the final ten minutes prior to the market open, the data is published every 15 seconds. Beginning at 9:28, the likely opening price for each security is added to the published date stream. Orders placed between 9:28 a.m. and 9:35 a.m. cannot be canceled.


So wheel is already invested. Why exchanges do not apply that? The only explanation is that they are letting their users to buy coins 100x higher for their own profit. Perhaps they are manipulating with order of orders that way that their coins are being sold on the top of that 1 min candle with 10-100x profit. Avoid creating orders in first 5 min of any listing. You will mostly loss majority of them.

[Beerwizzard]

So wheel is already invested.

Ah whose wheels... they are investing in everything!

Why exchanges do not apply that? The only explanation is that they are letting their users to buy coins 100x higher for their own profit. Perhaps they are manipulating with order of orders that way that their coins are being sold on the top of that 1 min candle with 10-100x profit. Avoid creating orders in first 5 min of any listing. You will mostly loss majority of them.

Well, you know the main answer. Crypto exchanges are not that regulated as traditional ones so if they have a chance to get some money from fees then they will definetely get it.
Also crypto exchanges are working 24/7 so it is a bit different from your example.

[alisafidel58]

I guess that how the market goes and why would exchanges limit their users? Limiting traders is not essential to exchanges. AFAIK there are no exchanges that limit their traders.

[Tytanowy Janusz]

get some money from fees then they will definetely get it.

They would get fees even with fixing. All trades in first moment after opening will be done at price set during fixing (like on stock market) not with random price as its now.

Also crypto exchanges are working 24/7 so it is a bit different from your example.

I'm talking about coins listing not everyday trading on listed coin.

I guess that how the market goes and why would exchanges limit their users? Limiting traders is not essential to exchanges. AFAIK there are no exchanges that limit their traders.

Its not limiting. Its letting them buy coin at opening with accurate price instead of random price.

[alisafidel58]

Its not limiting. Its letting them buy coin at opening with accurate price instead of random price.

Have you ever heard of "Pump and Dump"? On newly listed coin? If you manage to hear it then that's the answer.

[Tytanowy Janusz]

Its not limiting. Its letting them buy coin at opening with accurate price instead of random price.

Have you ever heard of "Pump and Dump"? On newly listed coin? If you manage to hear it then that's the answer.

Its not pump and dump. Its finalizing orders order by order instead of with fixed price set by traders during fixing (like on stock market). You know how its done now?
1- Exchange opens setting orders
2- first user create sell order at x100 just for fun
3- second user create market buy order
4- third user create sell order at x1.2 for small profit
5 - fourth user created market buy order (0.01 sec after guy from point 3)
6- ......
n - n user created sell order at 0.8 of last price on other exchange
There are n-1 orders on market. And they hanging for moment that exchange will open trades.


Then exchange opens trading and is finalizing orders order by order. Means that guy from point 3 will buy with 100x price (because that the only wall that is on market that his buy order can hit in) and guy who made exactly same order type 0.01 sec after will buy at x1.2 price (because currently that's the lowest price available). That's ok for you? Or that's the stupidest way to open trades during listing and its done like that only to scam users.

[Beerwizzard]

get some money from fees then they will definetely get it.

They would get fees even with fixing. All trades in first moment after opening will be done at price set during fixing (like on stock market) not with random price as its now.

Right now, without any artificial barriers they have more volume and they are getting fees out of this volume. Any attempt to stop it should cause a volume decrease.

Also crypto exchanges are working 24/7 so it is a bit different from your example.

I'm talking about coins listing not everyday trading on listed coin.

Projects are paying pretty big money to get their coins listed. Also exchanges ask projects to provide "market making activities" and it seems like they don't really care about the way it will work untill they are getting well paid.

[Xampeuu]

right, they gave a warning on the front page. I think this aims to make bitcoiners learn the risks first before deciding to participate in this business, so they don't regret taking the risk later

[Reid]

And that is also why many are selling on the first listing which they thought is the bounty hunters fault.

They should really look into this.
This could also stop the dumps that is happening in exchange for just a little amount of USD. That way the trust to crypto currencies could also be back.
We are losing supporters, better make a way to get them back.

[Zadicar]

And that is also why many are selling on the first listing which they thought is the bounty hunters fault.

They should really look into this.
This could also stop the dumps that is happening in exchange for just a little amount of USD. That way the trust to crypto currencies could also be back.
We are losing supporters, better make a way to get them back.

Bounty hunters do always took the blame when it comes to first listing and then the price dumps.

About on the thing you do said,being optimistic to get them back isnt bad but doing it is the most hardest part.

[Tytanowy Janusz]

I'm not talking about first listing after ico. Well that too but I'm mostly talking about any listing. Even if coins was listed on other exchange before. Just the way how exchanges opens trades is random and unhealthy for customers.

[palle11]

Just the way how exchanges opens trades is random and unhealthy for customers.

Or you think that an exchange that is open for business will restrict numbers of orders so as to have empathy on customers? I don't think they will do that, they will allow customers to express their selves on their decision in making orders. That is my understanding on this.

[Lpim01]

Prices may varies with the market demands and also its market volume. It is usually happen that after listing a certain coins will definitely turn down as many will easily sell their coins in low price which it is dragging the price to the bottom.
I also experience like this and it making me to loss my funds at 50% but I do believe isn't the end of my crypto life and still have chances to recover those losses before.

[hugeblack]

Exchanges do not really care about their customers, if true, the number of cryptocurrencies will be less than 100 coins, there is no need to create more than 1000 repeated coins with such financial models copied from each other.

Orders to sell and buy are often controlled to take advantage of the ambition of some people and then scam them to unload the price again.
Do not forget that there are armies of bots that are selling/buying in models make the loss a huge loss.

Also, the market operates 24/7 making the opportunity to manipulate between platforms "South Korean and American exchange platforms."

[Tytanowy Janusz]

Just the way how exchanges opens trades is random and unhealthy for customers.

Or you think that an exchange that is open for business will restrict numbers of orders so as to have empathy on customers? I don't think they will do that, they will allow customers to express their selves on their decision in making orders. That is my understanding on this.

How much will exchange lose by implementing price fixing during coin listing? Volume of first minute of trading was equal to 6000 BTC. I bet that all trades with more than x2 price of 10 min average (2x 700 sat), that would not be fulfilled was less than 1000 btc. Transaction fee with BNB discount is equal to 0.075 % for buyer and same for seller so we have 0.15%. We have 1.5 BTC. Is that really that much for binance compared with evident give a f... about customers?

Those 1000 btc is even too much. In my opinion with price fixing listing would look more professional and would bring more investors. Also, traders seeing price change during fixing would move their orders to be fulfilled.

Prices may varies with the market demands and also its market volume. It is usually happen that after listing a certain coins will definitely turn down as many will easily sell their coins in low price which it is dragging the price to the bottom.
I also experience like this and it making me to loss my funds at 50% but I do believe isn't the end of my crypto life and still have chances to recover those losses before.

It's not about that. Celer (25.03.2019 binance listing) ICO price was close to 160 sat. Binance opens trades with 3000 sat price because at that price they finalized first trade by finalizing them order by order...
It's not about supply and demand. Its pure random. Read my post:

You know how its done now?
...

[magneto]

I don't think that this is necessarily an issue.

Traders go into a recently listed asset and know that when it first gets listed, the prices will be artificially inflated for a period of time as the markets adjust to the normal deposit/withdrawals, as well as the hype from the listing quietens down. The volume that is generated at these kinds of prices is most likely very low anyways, because people with some common sense will know that at the beginning, it's as good as a purely speculative token.

There is nothing the exchange can do to stop this anyhow. They provide the orderbook and the trading engine, and nothing else. They can't manipulate the pricing of the orders, or revert orders from previous instances, because it's not their right or obligation to do so.

[Tytanowy Janusz]

I don't think that this is necessarily an issue.

Traders go into a recently listed asset and know that when it first gets listed, the prices will be artificially inflated for a period of time as the markets adjust to the normal deposit/withdrawals, as well as the hype from the listing quietens down. The volume that is generated at these kinds of prices is most likely very low anyways, because people with some common sense will know that at the beginning, it's as good as a purely speculative token.

I guess they don't know that when they place market buy order without order book fulfilled they might buy coin for 3000 sat instead of 700 sat. If they knew that they won't do that. How they could know what's in order book if order book is not visible before opening trades.

There is nothing the exchange can do to stop this anyhow. They provide the orderbook and the trading engine, and nothing else. They can't manipulate the pricing of the orders, or revert orders from previous instances, because it's not their right or obligation to do so.

Its called price fixing and its happening during every session on stock market. Before opening trades they have orders like:

Code:

sell
999
998
997
995
650
630
600
200
at any price

buy
at any price
850
840
830
820
700
500
200

During fixing exchange calculate crash price at for example 700 sat and fulfill sell orders with 200 600 630 650 sell prices giving custommers even better price (they sold for 700 not 200-650) and 850, 840, 830, 820 and 700 from buy orders (better price too). Rest of orders are waiting in order books and may be fulfilled during trading. Thats how fixing works. Provides best price for custommers while opening trades. Not random how its now.

[Beerwizzard]

How much will exchange lose by implementing price fixing during coin listing? Volume of first minute of trading was equal to 6000 BTC. I bet that all trades with more than x2 price of 10 min average (2x 700 sat), that would not be fulfilled was less than 1000 btc. Transaction fee with BNB discount is equal to 0.075 % for buyer and same for seller so we have 0.15%. We have 1.5 BTC. Is that really that much for binance compared with evident give a f... about customers?

That's not really much for them but why should they care while they already a top #1 exchange? Being first and having a good volume is already passively brings them a lot of traders.

Exchanges do not really care about their customers, if true, the number of cryptocurrencies will be less than 100 coins, there is no need to create more than 1000 repeated coins with such financial models copied from each other.

An exchange is just a place to exchange one coin to another one. They list only coins, that will bring them enough volume and which devs will pay more. With a good volume exchange doesn't seem to be interested in picking coins that are unique and have their special usage. But if they will they should probably start trading only BTC.

[gowobonyok]

still all of that will depend on investors or traders who go there to increase the purchase volume and then the graph increases, even in the early minutes. and how can the exchange party prevent it? and it will certainly continue, whether the volume will increase or decrease.

[wuvdoll]

I believe those first buys and sells are not really exchanges problem. I mean when you put a new coin on listing there is usually two chances, one is the coin is already listed somewhere else and if you can see the price there you should definitely buy/sell around the same amount, I have seen people buy a coin at around 35 cents when it was listed at 16-17 cents somewhere else already, those people who buy and sell could either be bots or volume bots of the exchange and that is why it should not be cared but even if they are traders than its their own fault to buy and sell at those levels, normally thanks to arbitrage the price should be fixed to the equal numbers after a while. That is why I think the first moments are just out of exchanges hands if you ask me.