HomeНаука и техникаRelated VideosMore From: Boxmining

Market Manipulation & Trading Bots

1878 ratings | 51781 views
Researchers have found evidence that two trading bots, named Willie and Markus were responsible for market manipulation on the Mt Gox exchange in 2014. To make matters worse, they claim that these bots traded with Bitcoin they didn't have and sent signals of healthy market growth. Price Manipulation in the Bitcoin Ecosystem - https://www.sciencedirect.com/science/article/pii/S0304393217301666 👍🏻Subscribe to my YouTube Channel: https://www.youtube.com/c/boxmining 👑Recommended Exchange - Binance: https://goo.gl/joe55C 🤑Trying out Kucoin - https://www.kucoin.com/#/?r=7g34u4 ●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬● 💰Buy Bitcoin Through Coinbase: https://goo.gl/h1bw5v 🔒Secure your Crypto with Ledger: https://goo.gl/trBwPr ●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬● Telegram groups: Telegram Discussion Group: https://t.me/Boxdatamining Telegram Announcements: https://t.me/boxminingChannel ●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬● ♨️Social: Telegram announcements: https://t.me/boxminingChannel Community Forums: http://forums.boxmining.com Steemit: https://steemit.com/@boxmining Twitter: https://twitter.com/boxmining Facebook: https://www.facebook.com/boxmining ●▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬● Track ICOs graphically: https://icotracker.org 💪Donations (Message me for Shoutouts!): Bitcoin : 13EvsPm3YhiCPGksQQdvQUFtsbF8FoU6Cz Ethereum: 0x58d98516363D2A5f93CE6aB4A4a909599C3EEC3a Website: http://boxmining.com
Html code for embedding videos on your blog
Text Comments (431)
Boxmining (4 months ago)
👑Register for Binance: https://www.binance.com/?ref=10192887 🔒Secure your Crypto with Ledger: https://goo.gl/trBwPr Telegram Group: https://t.me/Boxdatamining Telegram Announcements: https://t.me/boxminingChannel
Michael (4 months ago)
Absolutely, as Tanweer points out there has to be a reason for the cryptos all going up and down in unison, that doesn't happen by accident. The prices are obviously being manipulated and the small investors are the pawns in the game.
wayne mortell (22 days ago)
Is There a Bitcoin Manipulation Cartel?
Toro Blanco (4 months ago)
There are planty of Russians organizing pump and dump on low cost coins every day.
1800splitair (4 months ago)
Im in crypto but have been banging on about how this could well be a bankers idea ( cryptos ), and with the one world currencey proposition by the EU it has all the hallmarks of being so. One dont need to be Einstein to work out crypto can all so be manipulated either by deception ( mt gox ) or price inflation. You can also be sure that satoshi, a ficticious name created to hide the true identity of.......... yes what better way to cloak your banker look that to sound Asian AF. Very easy to do on the internet....
Dragon Scale (4 months ago)
OMISEGO !!! DEX will save us from these dengerous exchanges.
Fly9909 (4 months ago)
Love your videos dude, and especially your recent conference coverage. Thank you for your insights, information, and all you do for us in the crypto community.
Cryptodarkpool (4 months ago)
How is this news ? Anyone in crypto should know this already .
Sz27 Clz75m (4 months ago)
can we help reduce the power of the market manipulators by.... da da daaaa... not using stop loses?!
crypto beavis (4 months ago)
great
Lost Child (4 months ago)
Absolutely true. I`m trying to get out of bitfinex but before I can do that i`ll need to clear my $-300 deficit in margin trade. So many times have i seen unreal price movements as Michael said about his 14-7 ether it`s not a coincidence anymore. In addition to that, I find myself getting slight lag and unable to execute orders during extreme movements. Sometimes I get logged out and get a screen saying I was banned. Again, more than it should happen and when it does I never benefit from it. Im having such a hard time getting out, I feel like I should just give up to the loss and take what`s left but I don`t have enough to withdraw since the minimum amount is $250.
Dun Dun (4 months ago)
I bet you coinbase and some Korean exchanges are running bots
Blackghost PT (4 months ago)
So. Will decentralized exchanges manipulate bots ?
pHbonz (4 months ago)
I think the more dangerous concern should be the Bankers manipulation of the markets... and eventual control of cryptocurrency in general. It seems pretty obvious that the banks have the most to loose if crypto and blockchain goes mainstream. And the ability to print money at will is the domain of the big banks. Are we so naive that we believe that the banks werent buying up BTC bigtime in the run up from $2K to $20K? With a few billion (small change for banks) they have the ability to dump a chunk of BTC and drive down the price. They buy back at the bottom and then sell at a lower high... lowering the highs and driving down the bottom... And the whole time shaking out the worried minnows. Remember.... if you're in it for the tech, you are probably still up... If you believe in Blockchain and decentralization, you got to HODL.... I'm willing to ride it down to 2X if necessary.... 100% profit in a year aint so bad for a chance to take out the banks.
some dude (4 months ago)
All those grains of salt....
Mrs. Vital Survival (4 months ago)
Yep. Sharks and Bots manipulation will push the price further down this week. I’ve positioned myself to take advantage of $6000 BTC and $500 ETH on Thursday due to CME futures expiring on Friday.
RedPat (4 months ago)
Yes: The stock market and metals are rigged. And, the big guys are now trying to do it with crypto, particularly as it applies to futures and ETFs. Hodl firm and hang in there! Just get the future maturity schedules and keep track of what happens right before they come due!
HowToCrypto Chris (4 months ago)
Phenomenal video. Thank you for sharing !!!
CHARLES HINSON (4 months ago)
Markets tanking this morning. Probably the Germany/France FUD.
Loosecannon Recordings (4 months ago)
What about the futures effect and coincidal of dates and prices thnjs for your show 👏✌️
David Michaels (4 months ago)
So what are you saying? That we must not invest in bitcoin anymore?
Dear Michael, This is one of the most important topics you have discussed, because the bitcoin price has enormous significance to the public.. I met Mark Karpeles in 2011 in Tokyo, he was obsessed with the bitcoin price rising, so first of all we have motive.. He is a programmer and it would have been very easy for him to create the type of bot you describe, so he had the means. He owned the only worldwide bitcoin exchange, It is safe to assume that manipulation is going on right now on all the exchanges. I am a market trader https://btcmanager.com/author/daniel-bruno/ and this issue is important to me. I also have my own projects https://en.wikipedia.org/wiki/Solidus_Bond and I invite you to do a show with me about these subjects.
FlamencoOz (4 months ago)
I read this book on the stock market which totally opened up my eyes - Michael Lewis' Flash Boys. It is totally infecting cryptos as well. http://www.amazon.com/gp/product/0393244660/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0393244660&linkCode=as2&tag=pypull-20&linkId=5AL5UWQUM37B2QTU
maulbrooks (4 months ago)
This is why I set alarms and not stops. On a trading platform to this day you can see smoothly increasing volume.This is because exchanges have bots buying and selling a crypto to each other to create fake volume. They are called volumizers. This is sometimes used to keep coins alive, but mainly to show volume to attract traders to their exchange
G-man (4 months ago)
Thanks for covering this highly relevant topic. Market manipulation isn't anything new and is certainly happening. The techniques used in the stock market are being applied in the crypto space. For example, spoofing, churning, wash trades, etc. You can see these in action right now with many/most coins. Look at the order books and history for an hour or two and you'll start to see suspicious activity. Trade/Invest defensively and use dollar cost averaging to mitigate effects of price manipulation. Good luck all.
Benny Bits (4 months ago)
make a video i'd watch and see what you're talking about
Don (4 months ago)
Check out Aphellion! New DEX coming soon!
jc chan (4 months ago)
Bots in Tron market 100% and also verge 😎
jc chan (4 months ago)
Bruh bots are run by many traders including us through API trading facility. No big deal . we are group of 50 chinese traders with cumulative 5000 btc 😂
Guy Fawkes (4 months ago)
Yes, i believe it is bots. Discussed this over dinner tonight.
reiwell del (4 months ago)
its confirmed. Bitcoin is really a bubble.
How can these bots trade bitcoins they do not have ? I do not get it.
Liam Kelton (4 months ago)
Quantstamp out here need to audit these exchanges
Mitch Ebin (4 months ago)
there is definitely widespread manipulation in the us stocks/futures/derivatives and the crypto markets. There are a lot of people with a lot of money that can hire PHDs to write complicated algorithms and use highly technical automated strategies and bots. That being said, you only get burned when you day trade. As long as you hodl you cannot be affected
Brian Keith (4 months ago)
yes yes PM IS HAPPEN ALL THE TIME
Haydar Sayar (4 months ago)
I learned a lot. Thank you . I think only way is decentralised exchanges. Try crypto bridge. It is brilliant
Barbara Florentine (4 months ago)
I agree with you that currency manipulation is advantageous to those who understand enough and have a greedy heart. Crypto is based on Trust. Not simply an expansion of the current fiat system. In Crypto we Trust ...MUST PREVAIL !
Jónatas Valério (4 months ago)
thanks for warning and advice!!!!
Hardy Fourtyniner (4 months ago)
HFT bots on major stock exchanges
Hardy Fourtyniner (4 months ago)
Bitconnect shuts down.
eastwest69 (4 months ago)
Lately I been watching trades on the exchanges, I had seen manipulations/ pushing one buy or one sell order multiple times to increase their gains. Do your research then buy and hodl, you will do fine on your investment
Future Building (4 months ago)
Let the bots run. This is the free market!
Reef Keepers (4 months ago)
Perhaps the YouTube crypto content providers should all get together and "represent" the public and come up with some sort of self imposed regulation and offer it up to the world governments as suggestions. I'd rather try and steer this in our own direction than to the government come up with something.
Crypto Chan (4 months ago)
Your a dev. LOLs...
adam martin (4 months ago)
Yea probably like HitBit when they froze my Vibe Coins during the spike in the last fortnight. They only unfroze the account after the price dropped back down one week later. 🤔
busnumber3 (4 months ago)
NEW just added today .. ( SSC ) Very cool sector - on OKEX - ICO was .16 now .09 cents 300 Million supply --Amazing Chinese Team ICO sold out in 2 days.. $30 Million
liberalsandblowjobs (4 months ago)
There is price manipulation going on in the stock market and that IS regulated. There is definitely market manipulation in crypto. It would be shocking if there wasn't.
Marc Parenteau (4 months ago)
HI! Dont you find it bizar that no one talks about Bitcoin futurs that becamed mature on January 18?
theAbeElement (4 months ago)
I can see the day when decentralized exchanges are illegal. the regulators are corrupt as well... they don't care if there is market manipulation, they just want a piece. the whole stock market is based on manipulation.
Car Karl (4 months ago)
i think this might be happening with this new iot coin called "INT Internet Node Token". It has a MC of like 100mil but a continious volume of 30-50 mil... seems shady even if the coin is hyped right now.
Vinswalla (4 months ago)
Gday Boxmining, what are your thoughts on a future where bitcoin goes beyond $100,000 or $1mill. Send fees will be in excess of $100 to $1000. is this sustainable for the middle class, if a regular person buys $1000 when the market is $1 million, they could loose the lot in transfer. Could this been a real resistance point.
JLQ (4 months ago)
Assume the worst seems like a good protocol, any more practical advice for traders on how to deal with this?
King Hac (4 months ago)
I THINK THAT YOU SHOULD KNOW ABT PUMP AND DUMPS
ClicketyClack (4 months ago)
Love your vids Michael. Just FYI, begs the question is a technical term for a certain logical fallacy. You should say raises the question instead. 👍
Unknown Entity (4 months ago)
When you said you you were a victim of the pump and dump or ETH bottoming out and then you liquidated your assets (withdrew into FIAT) and then it went back up again, you have to remember, you made that choice to sell your ETH. Was it market manipulation, most likely yes, but you fell for it. Take it as a lesson learned and remember the mantra: "You only lose when you sell".
Unknown Entity (4 months ago)
Anywhere there is a global market or even a regional one, there will be manipulation based on the way its designed. It's just the way it is and it will always be that way until design and mechanics of trading is changed.
Scott Calder (4 months ago)
Nice thumbnail.
WORLD COIN (4 months ago)
what do you think on SingularityNET
stophypocrisy (4 months ago)
EOS should take care of this problem on their blockchain platform. Its the only platform that looks promising and safe in the near future.
TxFw (4 months ago)
stophypocrisy Lol don't we all! Crypto is exploding and it's only going to get crazier as we move forward!
stophypocrisy (4 months ago)
I don't know. I feel crypto overload.
TxFw (4 months ago)
stophypocrisy ETC has audited smart contracts... what other blockchain is doing that?
denimlabels (4 months ago)
If you want to see what happens when US Exchange trading bots fail, look up the S&P 500 Flash Crash Video. I had a friend that worked on one of the biggest HFT trading firms at the time. I can tell you with 100% certainty that all of the US Markets at least are "Captured" by Trading Bots and Dark Pools. The bots main goal is to give and take liquidity in nanoseconds. Just watch the order book of any big instrument. You might see a BTC 400 Buy order and then in a flash its gone with no volume in the time and sales. Then its back 30 seconds later. This continues over and over until a price objective is reached and then the price is just slammed. The S&P 500 Flash crash was an example of fairly early large institutional trading bots in action without the proper governance to protect the consumers (retail investors). These bots are machines that trade proprietary algorithms with the flick of the switch. No human thought or input involved. Unlike humans, some of these bots are never ever beaten.
Zhiang zu (4 months ago)
This is no different than the Stock Market. Bots and AI modeling rule the entire landscape
Expert4x (4 months ago)
Best to still treat the CryptoMarket as the wild west - trust no-one and expect the unexpected. Make the best of opportunities as best you can.
Richard Schlegel (4 months ago)
Certainly this is a real quality video. Chapeau!
Make Money (4 months ago)
Puerco cabron
Frouch Itude (4 months ago)
If you don't stop selling btc and if you don't stop getting hope, it's all OUR dream getting smashed.
Maikito G (4 months ago)
I had a hunch
Obi-Wan Kenobi (4 months ago)
*Haha i know this since last year bro. Bots are everywhere*
Matt Ranum (4 months ago)
I thought you were going to talk more about the big holders manipulating the price to crush it utilizing the futures.   There was billions of dollars yanked out a just before expirations times.  Now are they buying or going to yank again for jan 26th.   hmmmmmm ..
Gina Love (4 months ago)
you said "trading bots are alive and active" He He Probably true.
Some Alaska Guy (4 months ago)
Brother this is why I am subscribed love this important information thank you for reporting this.
Pedro Soares (4 months ago)
BoxMining wants to say that Bitcoin's price is beeing manipulated by bots right now so that it keeps it Low. What do we get from all of this? That's probably a good time to buy and were going to see a lot of upside soon on BTC When they try to keep it low is for whales to be able to buy in huge chunks of a small price (they can't do that without raising the prices up).
Strategic Endeavors FX (4 months ago)
Pedro Soares JP Morgan trying to get in lol
Ariel Guatta (4 months ago)
It's ironic that the blockchain which made this trustless architecture possible, giving us cryptocurrencies, also spawned this scam-filled ecosystem. We need a better solution to level the playing ground for the individual investor.
D Lux (4 months ago)
Thanks for bringing this issue more into the spotlight!
nukestrom (4 months ago)
I strongly believe regulation is essential for the future of crypto industry. Also, futures trading is another price manipulation. http://www.businessinsider.com/bitcoin-price-wall-street-volatility-index-correlation-deutsche-bank-2018-1
The real MacGyver (4 months ago)
we dont need regulations just use ur power as a consumer and chose an exchange that offers more or complete transparency. no amount of regulation will stop all criminals in fx margin trading they got rules but no one can enforce them since its so much data ans the best way to not get caught is to stay low so nobody asumes foulplay with your ETH example they were rather careless.
Xk. (4 months ago)
There is bad actors in every industry and the advice given in 7:06 is the best advice to avoid being caught up in market manipulation.
Zol z (4 months ago)
Aurora DAO on idex new decentralized exchange what etherdelta was suppose to be check it out sometime
GrimR3aper (4 months ago)
Thinking there's no Market Manipulation in the stock market is like thinking there's no drug use in sports. it's just nieve. There is a lot of money to be made and computers make it faster and more efficiently than any human, it's wrong but when does that ever stop wall street or Governments.
Darkendevoures (4 months ago)
5:06 Smooth bro, lol Thanks again mate very informative
Radek Radek (4 months ago)
As you seemed to be investigating the whole costing of crypto, in general, please spend some time in actual costing of using crypto. It does not look as cheap as its being claimed. There a few factors to be involved which make them actually very expensive. Trading and even transferring crypto between wallets is also chargeable! what I found extremely disturbing. I, personally trade currancy and deal with international money transfers in EU and originally I fought this crypto market is great. BUT I purchased and ivensted substantial chunk of money in verious coins and what have discovered, costs ARE HUGE, even to compare to avarge money exchange. FIRST i get charge to buy Bitcoin, SECOND I get charge to transfer bitcoin to exchange market (Binance/OKex, Bittrex, etc..), THIRD any transactin (sell or purchase) is commisioned, FOURTH any exchange back to bitcoin is commisioned and charged, FIFTH transfer of Bitcoin to my wallet is charged again and finally SIXTH, any exchange to FIAT and witdraw is charged again. In summary tarding and useing crypto is becoming expesive and may lead to disaster when everyone will find out, its 5 times more expensive then making simple wired banking payment! Something inb this industry in not making sence tobe compatetive ands cheaper then any current institutional providers....
Andy Clarke (4 months ago)
You are also then taxed on any gains.
Jiany Star Massa vich (4 months ago)
Great topic. Thanks
Coin Doge (4 months ago)
It can't be more obvious. Just look at Tron traded at Binance. A shitcoin always has the top3 volume on a daily basis.
cryptocognomen (4 months ago)
There absolutely is price manipulation. Can we do anything about it? nope. Just ride the waves. Just because there is price manipulation doesn't mean we can't take advantage of it. "None are more hopelessly enslaved than those who falsely believe they are free." -Goethe
Swaky (4 months ago)
Guys I just wanna say guys, thank you guys so much for watching guys.....
Dustin dusTir (4 months ago)
HEY COULD YOU PLEASE DO NEBULAS?
xiobus (4 months ago)
Maybe we can find decentralized solutions to improve this data... Regulated by the protocols and networks... Instead of institutions??? Any thoughts?
Hog Shark (4 months ago)
The 33 people who disliked this video are the people manipulating prices
Zero Thehero (4 months ago)
Guy's the same exist's on traditional markets as well. Black box's are not myths, as any Quant is living proof and most likely part of the formula. Trading at the speed of light, is a speculative and current future to trading. Has been for some years now.
Yeow Seng Yap (4 months ago)
Why people are so surprise? Look at how bitconnect conduct their scam? Create own exchange, manipulate the volume and price. No audit... :)
DigitalMiningSolutions (4 months ago)
Interesting. There's a Youtuber Called Sentdex, he's a python programmer and does alot of videos with regards to financial programming. He mentioned in a Q&A a few weeks ago that he ran a Bitcoin investment fund back in the run from 100 to 1000. If i'm not mistaken he said he used a program to make the trades. on his page he's got a set of videos where he shows you how he created a program called "Sea of BTC" where you can do BTC market TA and auto trading. It's years old, so I'm not sure if it's still using able if someone created it.
Capt Willard (4 months ago)
stock markets are ALL manipulation, stock certificates never change hands, trades don't clear for days, ie clearing houses don't even have order information, much less confirm; meanwhile billions of shares have "traded". Do the math.
Russell Sage (4 months ago)
Does price manipulation exist? YES! Absolutely! The question is "By How Much?".. Now that Bitcoin is being promoted in the futures market, this is probably a good indicator that the group of banksters feel like they are in full control of this currency! That said, other cryptocurrencies like Litecoin are much less manipulated because of their relatively small market cap.. For example like the hunt brothers did with silver in the 80s as other markets were going down, they pumped their money into the small market cap commodity of silver... This preserved their wealth until government regulations forced them to sell... Silver Litecoin and physical silver will shine like gold in the future 😉
Andy Clarke (4 months ago)
The problem is, all cryptos are pegged to BTC.
Cryptofrank (4 months ago)
yes we have to get strong and united to survive the cryptoworld.. we have to show the governments that this world is something.. to proof this we have a small part of time.. in march is the g9 and will make rules for this world.. so we have to show thats all this is revolution.. and let the best projects survive!! And destroy the bad fishes...
Maximus K (4 months ago)
Interesting fact disclosure, thank u Michael. There's always something out there to exploit us poor working bees pulling together our hard earned honey just for some crook to steal, such a fugly world this is...
Scoutwithoutclout (4 months ago)
1. do bots scan comment sections to gather market psychology as ammunition 2. could we fool the bots by all putting false thinking on message boards and such
brady nields (4 months ago)
I think a case can be made for price manipulation but if you look at the BTC/USD charts, a lot of the patterns suggest otherwise. If it were manipulated to the extent of the participants jacking the price up and selling, only to by back in lower, I don't see it. The periods of consolidation, sell offs, triangles, and support levels seem to suggest a price discovery of an actual free market. They could be manipulating the price by a few percent up and down but I think everyone knows that if the market moves, there's no manipulating it.
brady nields (4 months ago)
Not sure, because all eyes on BTC? Manipulation would have to be on an individual exchange unless one could buy and sell simultaneously across all exchanges in order to get the Marketcap Board to move in the desired direction.
Scott Meredith (4 months ago)
Why does virtually the entire board of coinmarketcap drop almost instantly, simultaneously, by roughly same order of mag percentage points, without any special news, without regard to any per-coin catalyst or anything else. Bam 1 instant wiped clear drenched the entire board in red within seconds.
cgnss (4 months ago)
a much needed video on this topic! hope you'll get more into details in the next video :-)
John G (4 months ago)
Dude, could you please share your experience, in detail, when you went through Bitcoin´s bear market?, we might be going into a bear market, so it would be helpful to have some history.
John G (4 months ago)
WTF this is really bad for the industry :-(
j garcia (4 months ago)
Very informative video. It is apparent that there is bot price manipulation in the crypto space and even in the stock market. Sadly, there will always be greedy people and manipulation in every arena where there is money involved. Though since crypto is the future, I agree that the safest bet is to stick with the projects with solid fundamentals to survive in the long run . Thanks for sharing bro!
Scoutwithoutclout (4 months ago)
why do people hate tether? i think its a fantastic tool
Alexa GB (4 months ago)
It's been 5 days I 've been wondering if VeChain is being manipulated by trading bots... how could one tell for sure?

Would you like to comment?

Join YouTube for a free account, or sign in if you are already a member.
How to become bitcoin trader? Exactly like Bitcoin, multiple digital currencies exist in the marketplace. So if you prefer to buy a few other currencies which aren`t available on Indian Exchange than you can utilize Bittrex. All you have to do is locate an exchange that you favor. Cryptocurrency exchanges have a massive potential to modify peoples minds and opinions concerning cryptocurrencies generally speaking and their application in actual life. So even in the event the exchange is attacked, its still true that you have your money. Furthermore, the exchanges prepare each and every industry for Bitcoin expansion. Existing stock exchanges will also compete to be able to fulfill the users configuration requirements. Sooner or later later on, the prices will grow more equal, meeting somewhere in the middleyour profit is equivalent to the quantity of convergence. No matter how far it is from Kijun, it is likely to return and test that level at some point. The amount of bitcoin is perpetually changing. In the US, it is 1000 USD. Whats even better, seek the services of a seasoned lawyer or at least ask for an in depth consultation. So youve read the newspaper about the meteoric growth of crypto currencies including Bitcoin or Ripple. Then coming up with 1000s of exchange rates simply to go out and get groceries is nearly impossible. Many cities around the world provide a bitcoin ATM where you are able to trade cash for bitcoin. The cryptocurrency world isn`t efficient.