Fraud going on the centralized crypto exchanges, a big issue!
In July 2018 Vitalik Buterin during the TechCrunch Session: Blockchain intensively wished that exchanges go burn in hell as much as possible. Although Buterin mainly addressed the discussion around the immense listing fees some of the crypto exchanges are said to request from Token Issuer, there is some bigger truth in that words.
Slowly but surely more and more people start to understand that we also have to take care of the evident quite big issues on the crypto exchanges as crypto wouldn´t be able to do the next step in evolution without cleaning up the space.
The Virtual Commodities Association, first proposed by the Winklevosses as a self-regulatory industry working group in March 2018 officially launched mid of August 2018 with some of the crypto industry’s biggest exchanges joining the effort.
Cameron Winklevoss explained:
“We believe adding a layer of oversight on virtual commodity cash markets, in the form of self-regulation, is important for consumer protection and to ensure the integrity of these markets.”
We guess that Cameron may be not only interested in consumer protection but mainly is eager that the SEC finally approves the proposed Bitcoin ETF`s and SEC made it quite clear, that as long as the risk for the potential market manipulation is as high as it now they will keep going on rejecting such ETF proposals and SEC quite right in that decision.
During the past months and and weeks several investigations showed a frustrating level of manipulation going on on the exchanges (neglecting the Tether issue):
Sylvian Ribes: Chasing fake volume: a crypto-plague.
Nic Carter:A glimpse into the dark underbelly of cryptocurrency markets
Cryptoexchangeranks: Is Making Fake 24/h Trading Volumes The Best Marketing Strategy for Crypto Exchanges?
and this is just relating to the level of wash-trading, there is no information on the level of spoofing and front-running (insider trading) going on on these places.
I am a CPA and the founder of the Crypto42 Watchdog initiative, I am also doing research for Fintelegram an investor protection media site.
