Unfortunately Saturday afternoon (9th November 2019), DueDEX was attacked online by the Exchange owner (Sam) from the exchange FTX_official.
The exchange FTX is operated by Sam and other HFT traders ranked #2 on the Bitmex leaderboard. They are currently being sued over market manipulation responsible for the attack on Binance: https://www.cryptoglobe.com/latest/2019/11/binance-attacker-sued-over-alleged-attempted-market-manipulation/
Sam Alameda launched a series of tweets highlighting #DueDEX spelling mistakes, contract guides and product imperfections. With the attack, DueDEX has received numerous hateful messages coming from suspicious fresh twitter accounts.
DueDEX are known as one of the few crypto Derivative exchanges to not operate an “internal trading desk”. This means DueDEX cannot trade against their customer base with HFT bots “matching” the internal orders.
DueDEX are in the early stages of development launching the exchange on the 5h of August 2019. Since then the team has been working hard to deliver a fair and transparent exchange platform for professional traders and I support that.
Exchanges go through many challenges with a cold start. Liquidity, marketing and exchange features are all exciting components to a successful roadmap. Exchanges do not foresee competitors openly attacking the exchange. Although DueDEX are not perfect, they strive to deliver a fair world class exchange leading into 2020 for all traders and thats what I support as a trader.
I have decided to address the FUD directly in a series of paragraphs highlighting the inaccuracies and the false attempts by Sam (FTX) to slander the growing exchange.
It is important to note, Sam would have spent considerable time identifying small product imperfections on the exchange. Old pages that hadn’t been updated were combed through to find this data. Rather than assisting an upcoming exchange, Sam launched an unprofessional attack with the help of known twitter trolls.
Heres the breakdown,
On the first tweet Sam highlights a static “total volume” example in a “contract guide”. This is remained buried in the exchange and is on an actual guide. It has no claims or relation with exchange trade volume.
DueDEX have noted the consideration to update the document to include responsive data reflected on the main trading page. It’s important to note that this document served as a contract guide.
This is rather obvious to everyone but Sam from FTX took the low opportunity to create and frame FUD. The attempt was to make it appear as if DueDEX were “faking volume”. As you can see on the trading dash the volume has been successfully growing since launch!
Volume started with a few hundred thousand USD, then up to $1–2M per day building for $6–8M before cracking a record $135M ! DueDEX are growing rapidly with $7–24M on days this week.
The guide is now dynamic and reflects trade volume as expressed on the trading dash.
Now let’s take a closer look at the FTX volume. It is knowingly operated by quant traders and somehow has extraordinary volume for a new exchange? There is no doubt these quant traders have employed their bots to run the books on the internal trade desk. This is done under the guise of liquidity and takes a few cents/dollars off each trade thousands even millions of times per day. Google “flashboys” for an understanding of how this works.
Across social media, FTX are generally avoided by top traders. Nobody wants to trade against an exchange. When you look closer at the volume, it really does start to look suspicious.
In another tweet, Sam also made the tasteful comment “ I gotta say, DueDEX has balls for putting “DEX”…… I mean, it’s scummy…”
Another shameless unprofessional attempt to bring down what DueDEX stand for.
DueDex is a crypto derivatives exchange. Due + Derivatives + exchange. “Due” means appropriate and fair. DueDEX should be proud of the name and what it represents.
It is common in the traditional word to see derivative exchanges use “DEX” to express derivatives. In no way shape or form has DueDEX ever made it appear as a “decentralised exchange”.
Traditional derivatives exchange with acronym of DEX
- Nadex (formerly HedgeStreet) (USA)
- National Commodity and Derivatives Exchange (NCDEX) (INDIA)
- Nepal Derivative Exchange Limited (NDEX) (Nepal)
- Turkish Derivatives Exchange (TURDEX) (Turkey)These attacks are baseless low balling efforts in an attempt to harm an upcoming exchange.
His choice of words is confusing. “Ballsy” and “Scummy”. If you can imagine a Quant trader opening an exchange to hedge against retail clients, instead of on Bitmex, that is certainly considered Scummy and Ballsy in anyones book.
The next tweet we see Sam from FTX researching DueDEX social media from 4th of August 2019. This would of taken Sam some time.
He is concerned about the number of likes and Rt’s DueDEX has received on a promotional post.
Common in the industry crypto startups will promote tweets and offer giveaways and competitions. With such giveaways you can expect huge traffic! Sam claims DueDEX have used bots which is entirely inaccurate. You can find bots on every giveaway or popular post. Sam is also familiar with bots, a quick glance of his social media can show you numerous suspicious accounts engaging with his own content. The CEO of FTX also operates bots, trading on numerous exchanges.
In his next outburst he directly attacks the DueDEX CEO. The DueDEX CEO is a very kind, conservative, traditional and humble character. Unfamiliar with social media, “Bo” can often be seen retweeting content supporting the exchange or others building in the industry.
We see Sam highlighting “2” basic twitter bots. The exact kind seen to jump on give aways.
It doesn’t make any sense for Sam to take this angle. What is he trying to achieve?
In his next tweet, Sam takes aim at DueDEXs major attractive feature.
-DueDEX do not operate an internal trading desk, unlike FTX.
Market makers operate externally and are on the same level playing field as everyone else with no special treatment.
As the exchange is so young, it is to be expected the liquidity is lower than established exchanges. Many of us remember Bitmex with under 100k bids on the books! DueDEX may be young but have the right approach to fair trading. By providing an exchange for traders to trade direct against one another, DueDEX will be the logical choice for smart traders seeking a fair and level playing field.
This particular stance of “no internal trading desk” may have upset Sam. Exchanges are open to make their own choices. DueDEX make the right choice for traders.
Sam seems to have confused himself with the tweet referencing timezone. The exchange automatically configures timezone based on the users computer.
By paying attention, just like trading view and Bitmex, you can actually adjust the timezone by clicking next to the time.
Slightly embarrassing but you’ve got to have a good laugh at his attempt!
Very self explanatory. We thank Sam for his “time” (no pun intended) for identifying the key points.
Sam is a known quant trader who also operates an exchange. The concept of market making should be well ingrained. Let’s take a look at the below tweet.
Whats actually happening here is market makers and traders are quoting and re-quoting. There is no volume being “faked” but simply traders have adjusted orders.
This makes no sense coming from a seemingly educated Quant trader. It is quite clear this is another attempt to slander an up and coming exchange.
DueDEX will continue on-boarding users seeking a fair and transparent exchange. As the user base grows, so will liquidity. Right now, DueDEX present the biggest opportunity in the exchange space.
12 NOVEMEBR 2019 UPDATE:
Here you can see FTX order books doing the quoting. They keep removing bids and then spoofing the books with a $5 gap. If you look closer bids are fully removed and then bought up to $10k USD in a “flash spike”. This is done to trigger stop limit orders and profit from those buying on “breakouts”.
It is strange for Sam to attack DueDEX when he has his own REAL problems to deal with. That flash spike affects customers with many people losing money on break out limit orders etc. I wasn’t going to publish this but it it is what it is. This is a similar tactic they used on Binance in the above article and is exactly what they are being sued for.
In another tweet, Sam employs and quotes an account previously banned from twitter for abuse.
The account claimed DueDEX documents contained a line with reference to Bybit.
A number of tweets shortly followed showing photo-shopped documents with peoples names, other exchanges, celebrities and even Donald Trump appeared in the documentation.
Here is one of the more credible findings:
You need to thank Sam for his thorough investigation. By welcoming the cooperation of industry partners we can join together with all participants bringing Crypto to the Masses!
Fortunately through the FUD, I reported an increase in my user sign up’s by 17% that day. (Trade volume was also up).
To show gratitude, I’ve created Sam his very own referral link. Next time he tweets about #DueDEX he can reap the rewards himself with 30% referrals fees and 10% of what his referrals refer!
There is no KYC and account sign up takes 20 seconds. With 24/7 customer support this really is the fairest and fastest growing exchange in the industry. Once you sign up, start sharing your affiliate link today!
Sign up and trade with Sam today:
Thank you everyone for reading and happy fair trading!
Love Bitlord x
