CryptoCurrency Exchanges—WOW, Price manipulation using Algorithms! By B. Yarbrough—Copyright©SunshinePublishing 2018—All Rights Reserved.
Ever wonder about the peculiar "in sync" price movement that seen on crypto-currency exchanges this year?--where VIRTUALLY ALL crypto-currency prices move up on one day and down on another day? This market behavior doesn't seem to make much sense. It also doesn't seem to follow the general market behavior norms that one sees with other investment markets (NYSE or NASDAQ for example). Yet, there should be really strong parallels –where stocks in companies of one type or another, surge and others falter. However, it appears that these normally seen Ups and Downs are being controlled, tempered and exaggerated by some overriding control. I am talking about crypto performance that seems to be tied, not to specific market factors or investor actions, but rather to algorithms impacting general market behavior that can only be explained by "computer based" back-room Crypto Exchange activities.
Bear with me and I'll roll out a very simple explanation, however improbable sounding, that fits the observed bizarre crypto market performance and although admittedly far-fetched, it's the only explanation I can see that makes any sense of the peculiar market movement investors are seeing on a daily basis. Other than the manipulation by smaller exchanges, (actions intended to pump up their daily volume –thereby making it possible to attract advertisers and the advertising income they bring). Larger exchanges realize that honestly reporting daily crypto trading volumes is essential to maintaining their credibility, so the problem is not trade volume, it, however, is that each day's trading activity is not consistently weighted and reflected in the prices of the listed cryptos from one day to the next.
Let me give an example:Let's pretend for a moment that I have one million EOS and we're also going to pretend that I'm the only trader on this hypothetical Exchange. Next, we will "ON MONDAY" for example, sell my 1,000,000 EOS. When I do, the price of EOS is going to go from $6.00 to $5.90. So the impact of that sale "ON MONDAY" is going to cause the price of EOS to drop $.10 . Later that day I am going to turn around and buy 1,000,000 EOS and that sale is going to cause the price of EOS to rise by $.50 (from $5.90 o $6.40). [The net result of the algorithmically enhanced BUY activity on Monday is that one should be betting for price increases across the board (as the algorithm employed on Monday has the effect of causing price to soar when EOS is purchased, and the impact of EOS dumping—during that day, on the token's price, to be minimized, but not eliminated.) --The control being exerted with seemingly random algorithmic control done with a computer program employing a basic (or not so basic) kind of algorithm is undeniable. However, the details and FACTS related to this manipulation are not something I am privy to, so this is all speculation,but the fact of daily market movement in 'lock-step" and daily variance in movement based on volume numbers lends itself to no other explanation**.]**
(continuing with our example) On TUESDAY, we take the EOS acquired on Monday and sell it for the $6.40 price shown at closing on Monday. HOWEVER, on Tuesday, a different algorithm has been activated. --One that has the net result of amplifying the impact of token sales instead of purchases. With this second algorithm in place, the incremental 1,000,000 token sale (as in they are only sold as people buy them) has the price impact of dropping EOS drops to$5.70. When we later that day decide to again purchase 1,000,000 EOS tokens, we observe that the price moves upward by only $.20 to $5.90.
Multiply this same algorithmically impacted price movement across all crypto-currencies on all exchanges and you will begin to comprehend why seeing the "en Mass" upward and downward movement of crypto prices is predictable and unavoidable. [The logic: Its like watching an apple fall from a tree to the ground, you can't actually see the size of the planet one is watching this on, but you can pretty accurately gauge the size of the planet based on the speed at at which the apple falls. Further if you see that the speed at which the apples you ob serve falling varies from day to day, you can be sure that the observation is taking place on different planets-- the same as "the price fluctuation differences of same volume trading" points to a different algorithm being in place. ]
This movement of crypto prices has been seen happening roughly since December of 2017, which I imagine is when the participating exchanges decided to begin employing this sinister set of price enhancing and deflating algorithms. It was, before this time, that there were huge disparities of price between the Far East exchanges and exchanges for example in the USA. Have you noticed that those great price gaps in the exchanges' value of Bitcoin, have stopped happening? Interesting? Watching the performance of crypto prices being posted daily, since that time in December, reminds me of watching a flock of birds flying through the air like a school of fish swimming in the water. They appear to move with what appears to be a single mind flying through the air in a unison that seems carefully rehearsed and choreographed.Yet, as we all know, this kind of price movement across all the varying types of crypto, at the same time, and changing direction from day to day, while being tied to no visibly discernible factors, simply does not happen without being controlled by people standing to gain from this manipulation. In this case the obvious architects of such a plot to play the market's investors for fools, are the owners of the top crypto-currency exchanges**.**I don't know how this kind of orchestrated price impact manipulation is being utilized (wherein sales on one day and purchases on that same day are amplified in One Direction and on another day Amplified in another Direction), however, I'm sure more savvy investors than I can think of many ways to use this information. In any event, this absurdly fantastic sounding possibility seems to be the only explanation that makes any sense of the bizarre market movement we have been victimized by in 2018.
Ben Yarbrough is the author of Linear Fractal Mathematics and has made the prediction of unexpected movements and events, previously seen as simply "random", his life's work. His secured website is Baccarattraining Dot Com and he is regarded as perhaps the top trainer of High Stakes gamblers in the world today.
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