The Wall Street Journal: prices on cryptocurrency exchanges are influenced by bots

The Wall Street Journal again broke out in a sensation on the subject of cryptocurrency industry. The journal has published an article in which it is reported that the prices on cryptocurrency exchanges are subject to the influence of bots. The author of the article also states that the automated trading programs are also engaged in price manipulations, because they allow the traders to create the rules for participating in transactions. The software transfers applications to the exchanges and executes them automatically. The analyst of The Wall Street Journal found in this scheme the opportunities for illegal manipulation, especially in the field of cryptocurrency as the segment is not controlled by regulators properly.

The author of the article accuses the Digital Virgil Capital hedge fund in using bots on several cryptocurrency platforms around the world. The bots use a “spoofing” scheme, expose false submissions to force inverters to buy or sell assets, thereby having a direct impact on their value. Such tactics are prohibited in the United States at the legislative level.

The author also dealt with the program Quatloo Trader, which has special tools that allow small traders to engage in "spoofing". And if the New York Stock Exchange regularly monitors the market for such manipulations, identifies violators and punishes illegal trading activities, then cryptocurrency exchanges cannot boast of such.

This is confirmed by the president of CoinList startup Andy Bromberg. He pointed out that illegal price manipulation takes place, which badly affects the reputation of cryptocurrency and individual investors.