RE: Why Unveiling Fake Volume is Essential for Market Growth
I'm coming from your wallet transfer and please send more! I comment when I can and I will take free money 24/7/365.
I think all crypto and money in general has "whale cartels." The big guys can always move markets. The more little people and mainstream adoption, the less that matters, but in general - the rich get richer. I think this is also known as "pump and dump" and there are many groups and places that actively use this strategy.
Plus - if someone actually sold and then bought - why is that fake?
For little people, all we can hope to do is be in the selling position when the pump is on and be able to buy when it is off.
In my case - you can use my accounts anywhere to predict markets. When I sell, the price will go up the next day. You can take that advice to the crypto or fiat bank!
Thanks for the comment @fitinfun
You put forth some very pertinent points. In this case, it isn't real liquidity as it is done with the intent to steer markets into a particular direction. I know intent alone is not enough so stick with me.
When the someone places a sell order, it is considered a true transaction when they are fulfilling someone else's demand to buy. In this case, nobody is really benefiting. Majority of wash trades are done at a single price. I place a sell for 40 BTC at $4100 and I also place a buy at $4100. It goes from me to me but because my sell went in first, it created a huge asymmetry of demand and supply. This caused retailers to jump in with shorts.
A common false perception these retail traders have is not the understanding that volume is two side (buyer and seller).
Your statement of whales in every market is true. Just that with crypto being hardly a fraction of the Forex market, you need much less capital to influence the market.
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