Don’t Bet on PeerPlays (PPY)
About 90% of PeerPlay’s daily volume is bot manipulated fake volume!
Peerplays (PPY) recently caught my attention as it was high volume on the BitShares market. I spent a few minutes investigating and think I am going to pass on this cryptocurrency.
As I looked at the security, it seems like all the market volume is made up of bots with the purpose of volume inflation.
First let’s start off with a mandatory Coin Market Cap chart.
This coin trading has a market cap of 16 million is trading at $4.22 each and has been on a downtrend sense summer.
I really don’t know much about the coin, nor do I feel like I need to, but just to cover the bases, this is a blockchain peer-to-peer betting platform.
Do you have an experience with it? Please share.
So according to market cap this coin has volume of $137,000. I downloaded a couple of days of data and crunched the numbers and try on these for datapoints.
Of the 680 trades I looked at there were only 51 buyers and sellers.
The 12 bots accounted for 90% of the transactions.
Of these If you exclude all people who bought or sold more than 10 times during this three day period, 39 of these people were real the other 12 were bots.
About 87% of the volume was done by bots.
By value the bots counted for $181,000 of volume verses $27,000 for the people volume. That is bots trading with bots to artificially inflate the volume.
I am still discovering lots of things in the crypto currency space. Apparently running bots, is fairly common, but is it common knowledge or false advertising?
As a society we put paint on houses. This paint makes it look good and actually serves to protect the wood on houses. We all know there is paint.
As a society, we seem to run bots to artificially inflate alt coin numbers. Do we as a society know this is happening? Should it happen?
I find this troubling, but wanted to disclose it.
When you sell a house it is not right to just paint over and purposefully hide problems. Problems should be properly disclosed. The new home owner can then monitor the problem and take action as needed. If you fail to disclose a problem you knew about, the new homeowner can sue for misrepresenting the facts.
To me this type of fake volume is the result of a scam or fraud and does not represent real interest or real people.
I don’t think most people realize how inflated volume numbers can be on cryptocurrencies. What are your thoughts?
You "(...)really don’t know much about the coin"...
That's why you should start here: https://peerplays.com/ and here https://t.me/Peerplays
BTW: Market making bots are always needed
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I do not object to market making bots, but there is such a thing as artificially pumping data. If they are running a scam does it really matter what they are promoting. I mean if you know they are lying, what is the point of spending time listening to the lies?
If you have any evidence that is PBSA running most of bots you should present it. And the token does not even pumping is moving in sideways...
All of the evidence is in the Bitshares blockchain. This is public and can be accessed.
Who actually owns the bots, I don't know. Given the activity of the bots, in my analysis it seems that it is really obvious -in my opinion- the main purpose is to drive up volume. Yes, I have more evidence and no I am not posting it all here right now. I will give a couple as samples though. Here is a few transactions...
Here is a count of some of the transactions. The first line should be interpreted as in my limited transaction set of 1,759 transactions Audi-7 sold 405 times.
If you look at the who they sold to... it is very similar.
Bots are there to fish dumb traders who do not search the fundamentals. PPY is a dividends token, you do not play daytrade with a dividends token. You hold and wait your revenue.
Indeed, last time I checked holders are waiting for first network revenue from the first game dapp running on network. Helmbet.