According to the Wall Street Journal, the real owners of the cryptocurrency market are automated trading programs or bots that manipulate the price of the cryptocurrency.
Automated trading software is a program that allows traders to establish certain rules for the work at the exchange, and then automatically execute a sequence of trading actions at a speed greater than the speed of any person.
Commercial programs are available for traditional and cryptocurrency markets and can be used for legitimate and manipulative strategies.
The author of the article on the Wall Street Journal believes that bots almost conquered the cryptocurrency market, as the market is regulated is very bad and this opens up opportunities for manipulation. Andy Bromberg, co-founder and President of a startup CoinList, told WSJ that “this kind of activity is now flourishing in the market. It harms the reputation of the market, and it harms individual investors.”
According to the WSJ, 80 million the hedge Fund Digital Capital Virgil uses its own bots on several cryptocurrency exchanges around the world. Stefan Qin, managing partner at Virgil Capital, told the WSJ that he actually plays cat-and-mouse game with bots competitors.Stephen also spoke about the tactics of one of the competitive bots because of the actions of which the company has lost a considerable amount of your Deposit:
Strategy bot was similar to the “spoofing” tactics, when traders create fake orders just to cancel them in the future. The purpose of this tactic is cheating other investors and create a false hype. In regulated markets such tactics are prohibited.
Kjetil Alerted cryptocurrency trader, which started operations in 2011, is the Creator of one of these bots. But he did not believe that the cryptocurrency market needs to be regulated
If you are all manipulated, it means that no one manipulates. If people decided to do something, they will do it regardless of any bans.
It is noteworthy that such programs are prohibited on traditional stock exchanges. The new York stock exchange regularly monitors all operations and punish the perpetrators.