Bitcoin command caused 212 million dollars to chaos for merchants. Is it a deception?

On April 14, a person offered a sale order to 2,500 Bitcoin, at a value Immediate prices are trading at that time.

Seeing such a big arrangement, the price of bitcoin began to be attracted to this level at approximately 17:00 UAE time.

Suddenly, it disappeared, as we saw using Currency glass dataAnd that caused in a short moment of indifference to the market, as well as the bulls and bears that fill the void in liquidity.

However, the price of bitcoin at the time was already on a shaky ground due to geopolitical concerns. Later, it decreased after the fading order caused chaos for the merchants.

So what happened?

One illegal technical answer can include a significant limit for RLE trading activity and then remove the request as soon as the price approaches its fullness. This is called “Order Spofing”, which is defined by 2010 US Dodd-Frank Act As “illegal practice to provide or submit bids with the intention of canceling before implementation.”

As shown in the thermal map of liquidity in the image above, on the surface, the arrangement looked at $ 85,600 as a major field of resistance, which is why market prices are started to be attracted towards it. However, in fact, this arrangement and liquidity are likely to be fired, giving traders and they are a stronger market.

Imagine the heat maps of the request for a request on the stock exchange and show the amount of assets located on the book at each point point. Traders will use a heat map to determine support and resistance areas, or even to target parking and pressure under pressure.

In this particular case, the trader seemed to have placed a potential one when the American stock market was closed, and it is usually a low period of liquidity for the Bitcoin market around the clock throughout the week. Then the demand was removed when the US market opened with the price move towards its fullness. It can still have this required effect, for example, there may be a major demand for one exchange that may motivate merchants or algorithms to another exchange to remove their request, creating a vacuum in liquidity and subsequent volatility.

Another reason is that the trader who puts a $ 212 million sale order on Binance wanted to create a short -term sale pressure to obtain a limit reduction, then they removed this request by filling that purchase.

Both options are reasonable, although it is still illegal.

“Great weakness”

The former European Central Bank analyst and the current administrative director of Oak Security, Dr. Jean -Philip, told Coindsk that manipulating trading behavior is “theoretical susceptibility, especially in unorganized high markets.”

“These sophisticated tactics give a fixed advantage over retail traders. Unlike Trafi, where the scaling is illegal and explicitly observed, there is encryption in a gray area.”

He added that “the scaling should be taken seriously as a threat because it helped operate the 2010 flash collapse in the traditional markets, which erase approximately $ 1 trillion of market value.”

At the same time, Bennes insists that he play his role in preventing manipulation of the market.

“Maintaining a fair and organized circulation environment is our maximum priority, and we are investing in internal and external monitoring tools that are constantly monitoring trading in actual time, commenting on contradictions or patterns that deviate from the behavior of the ordinary market,” Binance spokesman told Coindesk.

The spokesman added that if any person who manipulates the markets is found, the accounts will be freeze or reported suspicious activity of the organizers or the removal of bad actors from their platform.

Encryption

Deception, or strategy that simulates a false arrangement is illegal, but for a young manufacturer like encryption, history suffers from such examples.

During 2014, when there was little organizational supervision, most of the trading volume in bitcoin exchanges was conducted only from retailers and CypherPunks, and the industry opened to these practices.

During the 2017 ICO stage, when the trading volume rose, the tactics were also expected to be like deception, as institutions were still skeptical in the asset category. In 2017 and 2018, traders regularly put nine numbers who had no intention to fill, just to withdraw the request after a short period.

The founder of Bitmex Arthur Hayes said in A. 2017 Publisher Blog It “found it incredible” that deception was illegal. He said that if the smart trader wants to buy one billion dollars from BTC, they will deceive a billion dollar sale order to obtain it.

However, since the Taurus 2021 market, the encryption market has seen waves of institutional adoption, such as Coinbase (COIN) for the public, the former Microstrategy that reaches Bitcoin, and Blackrock funds that follow the exchange (ETF).

At the time of writing this report, there are no great orders indicating more deceptive attempts, and deception attempts appear to have become less clear. However, even with billions of tradfi circulation, examples of such a strategy are still present in many encryption exchanges, especially on low -liquidity altcoins.

For example, last month, Cryptocurrency Exchang Mexc announced that it has been confirmed to increase the manipulation of the market. An internal investigation found 60 % increase in market manipulation attempts From Q4 to 2024 to this first quarter of this year.

In February, Treated The excessive liquid gel market by deceiving the oracle pricing, and the response of HyperleLequid to the activity was met with doubt and a subsequent flow of capital.

How to intimidate the encryption market?

The burden lies in the end with stock exchanges and organizers.

“The organizers should lay the foundation,” Dr. Jean -Philip told Coindesk. [Regulators] You must determine what is considered manipulation, determining the penalties and explaining how the platforms should respond. “

The organizers have definitely tried to get rid of such plans. In 2020, Rogue Trader I condemn the Avi Eceenberg by manipulating Mango markets for decentralized exchange in 2022, but the cases were few and far apart.

However, “encryption exchange” must also “escalate their monitoring systems” and use circuit breakers while using the most stringent insert requirements to discourage the manipulation of the market.

Philip concluded that “retail users will not abide if they continue to get the front center, their exit and their spaters. If Crypto wants to outperform his casino stage, we need the infrastructure that is equivalent to fair participation, not games from the inside.”

Read more: It is clear that encryption traders send random mail to the currency pumping station associated with the Brian Armstrong dog