Binance CEO Says that There’s More Manipulation in Traditional Markets Compared to Crypto Markets

Market manipulation has long been considered a serious issue that needs addressing because it interferes with natural development of any market. When it comes to the cryptocurrency market, institutional investors have opted to keep away, largely because of concerns that surround the market manipulation.

The CEO of Binance, Changpeng Zhao, spoke about the issue of manipulation, saying that there’s far more manipulation in the traditional markets compared to the cryptocurrency markets. The traditional markets, as he puts it, have plenty of public instruments traded in a single market, and large market makers with close connection with insiders and media conspire to manipulate it.

Zhao wrote a tweet, making the sentiments to correct a user who said that the “crypto market is highly manipulatable”. In his reply, he asked the tweeter user to remove the word “crypto” there, saying that such cases are more rampant in traditional market. The tweet read as follows:

https://twitter.com/DoveyWan/status/1043521989653098496

Unlike traditional markets, where many public instruments are traded in a single market, cryptocurrencies are traded in multiple markets, making them more difficult to manipulate. Manipulation does exist in the crypto space and remains a major problem, but it’s not to a scale as big as that in stock markets.

According to a short study released by the University of Houston on the issue of market manipulation, cryptocurrency prices aren’t easy to manipulate, though possible. The main issue, however, is the faking volume or traded coins and total amount by exchanges in the recent months.

A specific report even went ahead to detail how exchanges such as Huobi and OKEx among many others provide fake trading reports. Many people would argue that, since the market is not properly regulated, the actions of such exchanges are illegal, and whatever they are doing is not harmful to the actual prices of coins. These claims are not necessarily true, because the entire market is affected by such false reports.

By reporting fake trading volumes, these exchanges are giving inexperienced and new traders a false image of the cryptocurrency markets, making users purchase coins that don’t move.

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