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📄 Spoofing 👉 https://www.coinbureau.com/analysis/cryptocurrency-spoofing/
📄 Volume Faking 👉 https://www.coinbureau.com/trading/exchange-volume-faking/
📄 Stop Loss Hunting 👉 https://www.coinbureau.com/analysis/stop-loss-hunting-crypto-whales/
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– TIMESTAMPS –
1:18 Overview on Market Manipulation
2:47 Tactic 1: Pump & Dump
6:40 PSA On Corona
7:33 Tactic 2: Order Book Spoofing
10:14 Tactic 3: Wash Trading
13:23 Tactic 4: Stop Loss Hunting
16:00 Tactic 5: Fear, Uncertainy & Doubt
⛓️ 🔗 Helpful Links & Sources 🔗 ⛓️
► Penny Stock P&D: https://stocksnewswire.com/pump-and-dump-stocks/
► Josh Kamps & Bennett Kleinberg Research: https://link.springer.com/article/10.1186/s40163-018-0093-5
► Kamps & Kleinberg Research: https://link.springer.com/article/10.1186/s40163-018-0093-5
► Xu & Livshits Research: https://link.springer.com/article/10.1186/s40163-018-0093-5
► Stop Limit Order: https://www.investopedia.com/terms/s/stop-limitorder.asp
► Loss Aversion: https://thedecisionlab.com/biases/loss-aversion/
🗞 News Stories 🗞
► Futures Manipulation: https://www.forbes.com/sites/billybambrough/2019/09/25/striking-bitcoin-research-points-to-price-manipulation/#22aca8e05c2b
► Crypto Wash Trading: https://twitter.com/CryptoHustle/status/741307457025282050
► Short & Distort SEC: https://www.sec.gov/litigation/litreleases/2018/lr24267.htm
1️⃣ Pump & Dump 1️⃣
Insiders or other market participants will try to “pump” the value of a coin until it starts gaining attention. Once other unwitting traders start jumping into the markets then the group “dumps” the coin on them at a handy profit.
These used to be used on Penny stocks back in the day but low liquidity altcoins have become fertile breeding ground.
A lot of these pump-and-dump operations are well coordinated. Users band together in Telegram groups and brazenly perpetrate these actions. Some of these groups and channels have pretty obvious names like McAfee pump and Rocket Pump.
2️⃣ Order Book Spoofing 2️⃣
It’s basically a tactic where a market participant will place a large set of orders with no intention of ever having them executed. The market participant is trying to create the illusion of large demand or supply in the marker even if there is none. It is also sometimes termed ‘painting the tapes’.
The crux of the strategy is to basically build up a large buy or sell wall on the order books of the exchange. When market participants see these order walls, they are likely to react to it.
This can of course happen on the other side of the trade as they build up those large buy walls. You think that there is support to hold up selling pressure.
3️⃣ Wash Trading 3️⃣
It usually entails the simultaneous buying and selling of the same asset by one individual or between a group of individuals. The hope is that it creates an illusion of volume in the asset itself. In general traders are more likely to trade a cryptocurrency that has more volume and hence liquidity than those that do not.
Of course, this volume is nothing but a facade and those traders will soon discover that the underlying liquidity is not there. Those who take part in the wash trading are usually either specific crypto projects or those backing it as well as the exchanges themselves.
4️⃣ Stop Loss Hunting 4️⃣
Stop loss hunting is a tactic that is used to force market participants out of their positions by driving the price of an asset low enough that it triggers their stops.
The hope of the whale that is using this tactic is that they will be able to pick up the asset at a lower price. It is also not a tactic that isn’t really illegal even in traditional financial markets. It is just using your significant market clout in order to force the hand of the other participants.
5️⃣ Fear, Uncertainty & Doubt 5️⃣
You can create a fake news narrative around a project in order to impact on the price. If you create a fake news narrative around a project of some sort then you can have a pretty large impact on price. Sell the rumour and buy the news is often done in crypto.
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading Forex, cryptocurrencies and CFDs poses considerable risk of loss. The speaker does not guarantee any particular outcome.
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