Crypto market manipulation schemes are becoming increasingly coordinated
Market manipulation poses a significant threat to both crypto and traditional markets, often executed by organized, well-funded networks rather than individual traders. Historical examples illustrate that manipulation has existed for centuries, evolving from simple schemes to complex operations in today's multi-trillion dollar crypto market. Current manipulative tactics involve coordinated efforts among traders using private communication channels to influence market prices, particularly targeting spot Bitcoin ETFs. The interconnected nature of crypto markets allows manipulation on one exchange to affect others, complicating detection efforts. While some manipulative actions may not be illegal, blatant tactics using multiple accounts are clearly against market integrity. Exchanges face challenges in preventing manipulation but are increasingly utilizing AI tools and collaboration to enhance detection and maintain market integrity.
