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Author Topic: Why exchanges constantly expose you to the risk of losing your capital.  (Read 652 times)
meanwords
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April 11, 2019, 03:59:06 PM
 #41

There's really nothing wrong about it. It was the investors' fault for trading in those prices. It's actually normal in and out of cryptocurrency space so there's nothing to complain about it. Also it's business, as long as they are not doing anything wrong while they are profiting from it, they'll just stay as it is.
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niteroy
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April 12, 2019, 08:33:58 AM
 #42

I also noticed that after listing at the crypto exchange, coins first have a high price, and then they fall, but this is hardly bounty hunters' fault. Rather, the price of all the coins is manipulated by the exchanges and the teams of those coins that go to the exchange. A team can sell coins cheaply, causing token holders to panic and sell their coins, after which the price drops even lower.
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April 12, 2019, 10:05:22 AM
 #43

I also noticed that after listing at the crypto exchange, coins first have a high price, and then they fall, but this is hardly bounty hunters' fault. Rather, the price of all the coins is manipulated by the exchanges and the teams of those coins that go to the exchange. A team can sell coins cheaply, causing token holders to panic and sell their coins, after which the price drops even lower.

I dont think the price manipulated. Like others investor behaviour, they just want to liquid their profits and convert it to others crypto or fiat. I think this is natural and always happen in any market. When the price reach peak, investor realizing the profits.

Tytanowy Janusz (OP)
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April 12, 2019, 10:30:43 AM
 #44

I also noticed that after listing at the crypto exchange, coins first have a high price, and then they fall, but this is hardly bounty hunters' fault. Rather, the price of all the coins is manipulated by the exchanges and the teams of those coins that go to the exchange. A team can sell coins cheaply, causing token holders to panic and sell their coins, after which the price drops even lower.

I dont think the price manipulated. Like others investor behaviour, they just want to liquid their profits and convert it to others crypto or fiat. I think this is natural and always happen in any market. When the price reach peak, investor realizing the profits.

90% dump in 1 second is normal for you? You don't know what you are talking about than. This peak and dump happened in 1 second after opening trading. Who is that fast to think "hmm i think that it might be my target. I will sell here"

There's really nothing wrong about it. It was the investors' fault for trading in those prices. It's actually normal in and out of cryptocurrency space so there's nothing to complain about it. Also it's business, as long as they are not doing anything wrong while they are profiting from it, they'll just stay as it is.

They were not trading in those prices. They set market buy order before trade opening. Trading opens at +1000% (because as i write opening price is pure random) and their order was finalized there.
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April 12, 2019, 01:00:50 PM
 #45

I've been watching the order book on some popular tokens and I see obvious bots placing fake orders.

In one exchange there's a bot that keeps 10 to 20, 5 to 10 BTC size orders open all the time. Soon as the price moves the orders move too, they're always a few % below current price and a few % below the best bids, just to keep the buy wall large but they never actually buy (trade spoofing).

This could be the exchange itself, since a regular person would need a ton of BTC just to open these orders themselves.

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April 12, 2019, 04:43:13 PM
 #46

Moreover, I agree with the OP and in the contrary that many dump their token, perhaps trading sites isn't the one to point out. I believe as long as the project is solid and good no matter how many people dump their token, the demand will carried out.
Sure, a good product with a valuable product that is high in demand will be able to balance the equation after dumping has been done but we still need to frown at dumping done.

Because, the value also has a way of attracting users too to the product, they might have a good product that is capable of creating high demand, but something must attract the end users to it, which in this case is usually the value of the coin, and this dumping of a thing being blamed on bounty hunters is just a way of distracting people from seeing who the real dumpers are, which I typically agree with what many people has suspected in this forum, that it is the exchanges, all these exchanges too are contributing to the market fall because they buy some of these products internally and then dump it.
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April 13, 2019, 07:18:55 PM
 #47

Wow, I have always had the mindset too that they do manipulate in this area, just that I have not seen much proof personally to back up my claim, I am sure those exchanges doing this are also reading this as they have lots of their representatives on the forum too, they will be looking for other means now to cover their secret but it is a good thing that we have smart people too around that will always expose them and proffer solution to their manipulation.

Thanks man, will also yield to this advice too when investing or performing any transaction on these exchanges, and I am sure you have indeed help others too on this forum, keep it up
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April 29, 2019, 07:17:17 PM
 #48

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.

In order to prevent that you need market makers, and market makers don't work for free.

The New York Stock Exchange for example licences only a few market makers, who then have the exclusive right to make markets for the stocks listed on the NYSE. But in return they prevent the extreme pumps that you see on crypto exchanges.

Most crypto exchanges don't want to pay for having market makers, and occasionally they'll offer a maker/taker reduction in fees but it isn't enough to compensate the market maker for the risk. So they go without market makers.

 
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April 30, 2019, 04:17:54 AM
 #49

I also noticed that after listing at the crypto exchange, coins first have a high price, and then they fall, but this is hardly bounty hunters' fault. Rather, the price of all the coins is manipulated by the exchanges and the teams of those coins that go to the exchange. A team can sell coins cheaply, causing token holders to panic and sell their coins, after which the price drops even lower.
It's not only the team but also it's also because of early investors. As early investors don't see much future of their investment; they tend to sell as early as possible. Meanwhile, bounty hunters or any promoters that receive that token for reward, will get their tokens at longer time compare to investors thus they are not the major/main cause of devaluing of market.
Tytanowy Janusz (OP)
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April 30, 2019, 07:10:39 AM
 #50

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.

In order to prevent that you need market makers, and market makers don't work for free.

The New York Stock Exchange for example licences only a few market makers, who then have the exclusive right to make markets for the stocks listed on the NYSE. But in return they prevent the extreme pumps that you see on crypto exchanges.

Most crypto exchanges don't want to pay for having market makers, and occasionally they'll offer a maker/taker reduction in fees but it isn't enough to compensate the market maker for the risk. So they go without market makers.

Its only about price fixing. Just simply don't open trades at random price (finalizing order by order). Open them with fixed price calculated from all orders that are on market. That's it. Despite market makers on NYSE (and any other regulated stock exchange) you also have build in limitations that holds trades if volatility is too big and opens them when amount of supply and demand is balanced. But I'm not talking about that. That's important during regular trading. I'm talking about first trades after new coin listing.
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