Check this out:
According to South Korea's Financial Supervisory Service (FSS), as of Monday, trading through APIs now makes up roughly 30% of the entire crypto trading volume. They’ve raised concerns that some traders might be using automated tools to pump up trading volumes and manipulate market prices.
The FSS pointed out that there are instances of traders engaging in tactics like making small trades repeatedly, placing fake orders, and working together across different accounts to manipulate the market.
If you trade, you probably notice how much manipulation is going on with altcoins. I’ve seen some folks successfully use multiple exchanges to rig altcoin prices and then dump their holdings for profit. Seems like it’s not just a solo act; more like a coordinated effort by a group.
Honestly, I feel like these kinds of manipulations are pretty much impossible to completely eliminate. Some exchanges are making attempts to tackle the issue, but it keeps happening.
Do you think the FSS in South Korea can actually put a stop to it? They’re aware of the situation, but it seems like stopping these manipulations might be out of reach. Am I on point here?
Was the intention to every trader not to make money? Why wouldn't then take advantage of every opportunity the sea that can Grant them the required results in wanted from trading, I still don't know how they can be steadfast in their results and achieve better with using AI and think they can get the based out of it in their trading experience, if they are doing so we should not be deceived, because they know about the risk involved and how they will maneuver their way out of it than ordinary person that does not know how things works and go for trading with some of these automated tools and ended up in loss, government should be less concerned on this issue.
I don't see anything wrong in traders using API. Ideally it's not illegal, it only reduced their chances of becoming good in trading on a long term scale. Today's traders are more concerned about growth financially not actually skill based. Most of them look for ways to make things easier for their trading journey. API or bots can't give you that much profit you will actually make if you trade based on your skill and not relying of some kind of tools.
Also manipulation is a normal part of the market so if these exchanges are worried traders are now able to manipulate trades in their own favor, maybe they should actually look at their own history if they haven't done same. We know how many exchanges manipulate the market as well so it's nothing new...
I for one don't think market manipulation can be eliminated in its entirety by the FSS, because it is one of the components of volatility in the market.
However, I think that the South Korean government can make manipulation of market price by traders on CEX using API bots, more of a riskier move and more expensive in nature, but with less excitement and fewer volume trades to be expected, it would help to deter, control or limit such manipulation.
Traders should also learn to understand the signs of how manipulation works so as to prevent it further, because if it is controlled on a CEX and it becomes more of a thing on a DEX where much traders have migrated to, it would be a problem for the ignorant traders and the broader market scope.
I wonder how effective their identification will be. I don't think they'll ban API usage, but they'll collect data on how users use the API. Not sure what kind of demands they'll ask the users, but it's clear they'll have to agree to be monitored in one way or another. Otherwise, it won't be possible for them to track which API usage behaves suspiciously or not, CMIIW.
Anyway, it's basically advocating for more control over the market. I do wonder how they'll plan to stop manipulation executed by bigger players. I'm sure they won't use something that's easy to identify like abusing API.
Its easy to track API usage, if the authority want to take action toward those who manipulated the prices they could do it.
If they are seeing surge of manipulation, they will supposedly take action and disable all those accounts and revoke API access. South korea is pretty strict on their crypto market.
Some pairs are getting frozen whenever there is suspicious activity going on especially in upbit. This news sounds like they are laying the groundwork.
But why are we hearing news like this that I posted on the topic but still you will later still be noticing that nothing has changed in the market as we are still continuing seeing manipulations all over the market. It is something that is very clear and noticeable. But let us wait and see if it will be easy but I doubt it.