The attack of the crypto bots

"Flash Boys" style manipulation is happening furiously on some crypto markets, as confirmed by Cornell Tech, as well as other sources.

Specialized arbiter robots trade against ordinary traders on decentralized exchanges. Companies that trigger autonomous trading programs seek to prioritize their orders by paying higher fees. They then use this advantage to overtake the orders of others by always placing their orders first.

Although the so-called DEX (decentralized exchanges) account for a very small part of the sales volume, expecting their users to grow. This is happening thanks to companies like Binance, the largest centralized crypto exchange in the world. But they are also trying to create their own DEX, and they are being followed by other major crypto exchanges. Arbitrage practices, however, are becoming more frequent on centralized exchanges, which is worrying.

This is yet another red flag to the crypto markets, which are already under the control of the regulators. There are also serious doubts that 90% of the stock market is fake.

Deficiencies in DEX exchanges threaten security around blockchain technology. The robots practiced practices similar to those described in Michael Lewis's book "Flash Boys," in which the author explains that they manipulated Wall Street's trading. He mentions practices such as overriding orders and network latency optimization.

Source: Bloomberg Finance L.P.

Photo: Pixabay

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