Just read The Willy Report - Are we still being affected?

[RockHound]

http://willyreport.wordpress.com/

So the report is articulate and compelling but are Bitcoiners still at risk from automated trading at centralized exchanges?

Fellow members on here have posted thread:

https://bitcointalk.org/index.php?topic=624877.0






But is there any risk that these (or similar bots) are currently in use at our major exchanges (Bitstamp, BTC-e, Huobi, OKCoin, Bitfinex, Kraken, etc). Is the recent influx of trading volume over the past week legit?

I'm a massive supporter of Bitcoin technology, but if price can be artificially inflated by multi-exchange coordinated algorithm, that's fraud even though a lot of us benefited financially.

[Joshuar]

http://willyreport.wordpress.com/

So the report is articulate and compelling but are Bitcoiners still at risk from automated trading at centralized exchanges?

Fellow members on here have posted thread:

https://bitcointalk.org/index.php?topic=624877.0






But is there any risk that these (or similar bots) are currently in use at our major exchanges (Bitstamp, BTC-e, Huobi, OKCoin, Bitfinex, Kraken, etc). Is the recent influx of trading volume over the past week legit?

I'm a massive supporter of Bitcoin technology, but if price can be artificially inflated by multi-exchange coordinated algorithm, that's fraud even though a lot of us benefited financially.

There are already 2 threads out....
and  No, we're still not affected.

When the chinese government "banned bitcoin", the price dropped from around $1200 to $900 rapidly meaning it was China not Willy responsible for the huge price increase. China has over 2billion civilians and plenty of billionaires...

$115million is not even 5% out of 7billion, which is Bitcoin's market cap..

[Ron~Popeil]

We were down then steady for several months. Artificially inflated markets don't act that way. 1200 was over priced and 400 was under priced. Both have corrected.

[SirChiko]

We were down then steady for several months. Artificially inflated markets don't act that way. 1200 was over priced and 400 was under priced. Both have corrected.

I wouldn't call it overpriced i belive we will pass it again in upcomming months.
Also OT i don't think that it affects us that mutch and market graph isn't saying anything other.

[greenlion]

$115million is not even 5% out of 7billion, which is Bitcoin's market cap..

Market cap is a theoretical calculation to determine monetary base. Comparing that $115 million figure to market cap is irrelevant, comparing it to the float is what means something, and the float is probably well lower than $1 billion, if not lower than $500 million.

[RockHound]

OK cheers, if there's no risk and it's actually Bitcoiners funds going in, then that's cool.

[Ron~Popeil]

We were down then steady for several months. Artificially inflated markets don't act that way. 1200 was over priced and 400 was under priced. Both have corrected.

I wouldn't call it overpriced i belive we will pass it again in upcomming months.
Also OT i don't think that it affects us that mutch and market graph isn't saying anything other.

We have had a huge couple of months infrastructure wise so I don't think 1200 would be over priced going forward. I think we will see it and beyond in the next 12 months. 

[RockHound]

We were down then steady for several months. Artificially inflated markets don't act that way. 1200 was over priced and 400 was under priced. Both have corrected.

I wouldn't call it overpriced i belive we will pass it again in upcomming months.
Also OT i don't think that it affects us that mutch and market graph isn't saying anything other.

We have had a huge couple of months infrastructure wise so I don't think 1200 would be over priced going forward. I think we will see it and beyond in the next 12 months. 

Temporal acceleration to $1200 by fraudulent automated trading.

Legitimate volume from Bitcoiners would have taken longer to achieve?

[SomethingElse]

$115million is not even 5% out of 7billion, which is Bitcoin's market cap..

Market cap is a theoretical calculation to determine monetary base. Comparing that $115 million figure to market cap is irrelevant, comparing it to the float is what means something, and the float is probably well lower than $1 billion, if not lower than $500 million.

What is a "float" and how does a person figure it out?

[Exergy]

$115million is not even 5% out of 7billion, which is Bitcoin's market cap..

Market cap is a theoretical calculation to determine monetary base. Comparing that $115 million figure to market cap is irrelevant, comparing it to the float is what means something, and the float is probably well lower than $1 billion, if not lower than $500 million.

What is a "float" and how does a person figure it out?

Bitcoin available for trading.

[exocytosis]

But is there any risk that these (or similar bots) are currently in use at our major exchanges (Bitstamp, BTC-e, Huobi, OKCoin, Bitfinex, Kraken, etc).

Is the pope Catholic?

[RockHound]

Coindesk stance:

"Trusting exchanges

Once again, dark clouds have gathered, not around the bitcoin network itself, but around the centralized gateways guarding the on- and off-ramps between it and the legacy financial system.

Such businesses have operated mostly off the block chain and are inherently trust-based, functioning effectively as unofficial and uninsured banks. With developers and executives from the technology world rather than the financial, they have been accused of everything from incompetence to malice before their funds simply vanish – often along with the businesses’ owners.

A trustless crypto-based payment system still relies heavily on trusted supports. More often than not, these ‘trusted supports’ are unregulated, hence they attract unscrupulous traders and speculators.

Those in the pro-regulation camp point to the inherent weakness of unregulated exchanges as one of the biggest problems facing bitcoin, but regulation remains a controversial topic in the bitcoin community and there is no clear consensus on what should or could be done to stamp out abuse."


http://www.coindesk.com/bot-named-willy-did-mt-goxs-automated-trading-pump-bitcoin-price/

[helmax]

i think Huobi, OKCoin have bots

[RockHound]

i think Huobi, OKCoin have bots

Most exchanges offer an API, which software engineers can use to facilitate automated trading.

Willy/Markus bots sound like they were purposely programmed to maintain Mt Gox price index within tolerances. Then systematically make acquisitions which would only inflate BTC price.

When the price stated shooting up last week, lot's of speculation appeared on this forum - with a lot of traders saying it's due to "Whale" action or market manipulation.

I'm not 100% sure similar bots aren't being employed at the Majors right now. But most believe recent activity to be legit.

I don't have a problem with the use of API's for conducting day trading margin buy/sell's. Just an issue with bots designed to manipulate the market.

[SomethingElse]

$115million is not even 5% out of 7billion, which is Bitcoin's market cap..

Market cap is a theoretical calculation to determine monetary base. Comparing that $115 million figure to market cap is irrelevant, comparing it to the float is what means something, and the float is probably well lower than $1 billion, if not lower than $500 million.

What is a "float" and how does a person figure it out?

Ahhhh right.  that is important.  a person can only sell what other people are willing to buy