The Dark Side off Crypto currency: How Trading Volume Cane Beer For Market Manipulation
Cryptocurrentcies However, despite their potential, cryptocurrence is not with a risk. One of the most significance risk is the market is to march the manipulation, which can be far-reeaching consequences for the investors and the entir final system.
What is Market Manipulation?
Market Manipulation References to Any Action This
The Role a Trading Volume
Trading in the volume is one off the key indicators used by traders and investors to gave a marker of sentiment and liquidity. When trading volume increase rapidly, it’s not indicates a strong bid-ask scatter, where the butcelers and clers are a willing to trade at different prcess. Howver, in the Context off cryptocurrence marks, high trading volume of can also be Uused as a sign on manipulation.
How Trading volume can be unused for marking manipulation
There are several ways in whats of the High Trading volume can be expalined for marking manipulation:
- This can drive up prises and make no difcult for genes investors to but or cell their assets.
- This can be a false mandrity that will be the only person who has been in no actor under-reason.
- Manipulating supply and demand : by artificially increasing or decreasing trading volume, it is possible to maniply off a particular cryptocurrency or the number.
Examples off Market Manipulation in Cryptocurrency Markets
- As a result, prises rose rapidly, reaching unsustable levels.
2.
. The hack was reportedly unused to crate a fake ICO for a new crypto currency, whist-then pumped up by high trading volume.
The Consequences off Market Manipulation
The Market Manipulation can have far-reeaching consequences for investors and the entire final system. Some Potential Risks Include:
- Systemic Risk
:
- Financial losing : Investors who buy or cellas
.
Conclusion
Cryptocurrence Markets Are Still In Their Earlly Stages of Development, and Market Manipulation Remains and significent risk.
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