The cryptocurrency exchange Bitfinex set up its market close observation tool in order to contest the abuse of the market on the ‘Shimmer’ platform.
On March 24, as per the announcement disclosed to Cointelegraph, Shimmer signifies to recognize and examine the feasible shrewd behaviors along with cautious trading on Bitfinex. Moreover, the exchange strongly awaits the integration of the tool, along with its engine, would upgrade the integrity and visibility of the market.
Warning of suspicious trading to Bitnex
The Bitnex team has been made aware by email when the improper trading activity is discovered on the exchange’s trading pairs that further indulge the futures, as well as margin, enable traders. The firm assumes that Shimmer would help in blocking the activities like wash trading as well as layering.
The exchange’s chief technology officer Paolo Ardoino has concluded:
The all-inclusive network and the trade supervision efficiency are necessary to operate a leading cryptocurrency exchange. The Bitfinex has preferred to establish its state of the art surveillance system. This will further aid in ensuring that the potential considerate practices are entrenched out with the detection of skeptical behavior.
Ardoino further disclosed to the Cointelegraph that Shimmer measures the order and trade the data and also gives an attempt to get the patterns for layering, spoofing along with several manipulative practices. He added that to eliminate the false positives because of the high-frequency bot-based bot-based trading system can be now directed to have different thresholds based on user activities.
Ardoino further disclosed that Bitfinex now prepares to create Shimmer as an open-source in the near future, but still, one can observe no deadline for the same. The exchange spokesperson told the Cointelegraph that when peculiar trading is identified, then the result will observe the firm to take several measures depending on the severity of the activity.
Market manipulation in trading of the cryptocurrency
With being less coordinated, the cryptocurrency market has been charged with being so much susceptible to manipulation as compared to its traditional counterparts. For example, research in November 2019 implied that a single whale was in charge of rising in the Bitcoin price in 2017. As well, there are many different sources that disprove this theory.
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