1. Buy lots of BTC from a large holders via a broker a price of "Bitstamp + 10"
2. Dump 10% of it on Bitstamp --> Price goes down
3. Rinse and repeat
I have a feeling it is happening right now.
Sounds like a viable strategy to make use of the fact that there are some early adopters with large stashes. Any evidence that this is happening?
I am pretty sure that Bitcoin brokers exist. "Bitstamp + 10" and "only orders larger than
$100k" is rumor.
I think this would work until the large holders (EAs) selling at "Bitstamp + 10" get wise. If this is true, I expect we should see some very large market buys by the current dumpers once they've accumulated their hoard. With mark-to-market accounting, these large holders can possibly increase their mark-to-market net worth by more than the number of dollars used to later pump the price. In other words, once they've accumulated their hoard, they want slippage.
Rinse and repeat and the price keeps ratcheting up like a staircase.
Probably we have seen that before.
If you can't beat 'em, join 'em.
Yup. Probably nothing else to do about it. Still important for the whales considering to sell to know about this strategy.