Wash trading, tape painting, spoofing, pump and dump.
There have been so many people sentenced for these activities. Despite the fact they know it is illegal they keep trying.
Now let's imagine you are one of the people who want to make big money in the market, you can try one of the activity mentioned above, but you are facing the risk of going to jail. Well it does not sound so cool anymore, right? But wait... What if there was some kind of unregulated market with big cap and liquidity?
Aaaaand there is one =) In my personal view, all the market fraudsters are already there, rigging the crypto market with style.
I can't tell you what the consequences might be nor how will this end. But I've found some evidence and obvious facts I would love to show you so you will be more careful if trading cryptos. Needless to say, it is really hard to find these and the guy, who firstly presented "Spoofy" on one of the crypto exchanges, is now facing a law suit.
"Submitting a genuine order on one side of the book and multiple orders at different prices on the other side of the book to give the impression of substantial supply/demand, with a view to sucking in other orders to hit the genuine order. After the genuine order trades, the multiple orders on the other side are rapidly withdrawn." Wiki.com
Many people are reporting this on several exchange markets. What can you do about it? They just laugh to you...
"Painting the tape is a form of market manipulation whereby market players attempt to influence the price of a security by buying and/or selling it among themselves so as to create the appearance of substantial trading activity in the security. Painting the tape is an illegal activity that is prohibited by the Securities and Exchange Commission because it creates an artificial price for a security." Investopedia.com
Placing 5 BTC ask/bid side, creating fake Volume throughout the whole days, months...
I know it is not so obvious here, but there are videos with those 5BTC orders are still being placed over the whole day on both sides... It could be some Market making practice, but I can't see the logic if it really was MM.
I really do believe that the blockchain will change a lot and that there are some altcoins which could be of a use in the future. But now, with huge space for all of the kinds of fraudsters, it is not viable to survive. The people are being ripped off right now at some of the exchanges and they don't see it. Hope this helps to some and at least they will move to exchanges where no market frauds were spotted. The question is whether it is possible to find such.
If you found this interesting, there are more detailed articles on medium, Meet ‘Spoofy’. How a Single entity dominates the price of Bitcoin. It will lead you to other interesting stuffs about this topic.