The Pain of Price Manipulation and why it Sucks!

Adoption by Blockspectator News  | 7 months ago
Price Manipulation, Markets, Cryptocurrency, Bitcoin
3 min read

It is hypocritical for centralized trading outlets to fault cryptocurrency exchanges for price manipulation. Ever since cryptocurrencies and cryptocurrency trading gained popularity, news concerning alleged price manipulation has surfaced and increased significantly. Nevertheless, cryptocurrency trading surges on despite the negative press.

Price Manipulation is Systemic

Price manipulation is a systemic industry practice, and anyone would be deluded to think otherwise. Any precious commodity that has the potential of changing the geopolitical landscape or impacting leading economies is subject to some form of manipulation by players in the world market.

Commodities such as oil undergo various price changes year in year out with financial reports giving similar reasons for price fluctuations. As Dr. Kent Moors highlights in his piece, it would be foolish to believe that these changes are market driven. The only logical and open-minded explanation is price manipulation.

The stock market also experiences price manipulation. As reported by The Balance, it is quite simple, even legally, to manipulate the prices of stocks.

Why, therefore, are cryptocurrency exchanges receiving backlash and criticism for alleged price manipulation practices? Just hypocritical nonsense from pessimists and skeptics.

The Drivers of This Curse

Profit is at the heart of most, if not all, of the business deals made. Trading in cryptocurrencies is a booming business, and the promise of profits drives traders into making huge investments. It, therefore, comes as no surprise that players in the industry would want to orchestrate scenarios where they end up being the beneficiaries of the ongoing trade.

Investors and exchanges all stand to gain from price manipulation. Investors mainly gain through margins which is a massive business while exchanges earn from transaction fees and through liquidation of assets.

Apart from profit, price manipulation remains crucial in safeguarding investments. Taking notes from centralized markets, the cryptocurrency market needs protection from bubbles and their effect. Whenever a bubble arises, it is almost sure that it will burst.

To prevent the effects of a bubble burst, price manipulation is crucial. With the kind of speculation taking place, cryptocurrency exchange markets take preventive measures through price manipulation.

Better Safe than Sorry

Let’s be real, we are all in blockchain and cryptocurrency for the money, and maybe making the world a better place. We have to accept facts as they are; price manipulation is real, and there is nothing we can do about it.  However, we can learn to play as the price manipulators play.

Studying market movements and following the latest cryptocurrency news must be a daily task for traders; market movements that have the potential of affecting the price of a crypto asset needs constant monitoring.

Such asset movement holds the possibility of price manipulation and should trigger a reaction from traders.

Traders have to be ready to follow assets and money to prevent any losses.

Another simple fact of cryptocurrency trading- price manipulations are designed to favor those with bulk crypto assets. The rest who gain from the price changes do so by luck or studying market movements.

After all the price manipulation allegations, traders continue even more in their craft.

There are risks associated with trading in cryptocurrency exchanges, and every trader understands this. The same can applies to stock markets. Therefore, all the price manipulation allegations should be thrown out and the cryptocurrency market left to thrive as it has always done.