Cheats of the popular crypto-exchanges: the game on the trust of users

The lack of a clear regulatory structure of relations between cryptocurrencies users and representatives of the digital asset exchanges opens up a wide scope for actions for the latter. The actual impunity becomes a pledge of rates in which users’ confidence is converted into the profits of such sites. About the most popular methods of conducting dishonest work of exchanges, further in the material.

Drawn volumes

The competition between the exchanges is largely based on trading volumes: whoever has the most is the leader. First, the leading position in this direction is regarded by users as evidence of quality, since bad sites are not able to attract a large number of traders. However, few people think about the nature of these trading volumes.

Unfortunately, the technical features of the structure of the most digital asset exchanges allow fake data to be displayed for general reference. The wide possibilities of falsification are currently reflected in the ratings of popular resources, within the walls of which you can watch the “drawing” in real time. One of the examples of volumes’ falsification occurred on March 15 of this year:

The screen shows that the trading volume, according to the corrected data of the LBank exchange, increased by 192.8% during the day, due to which the site shifted the leader of the rating - Binance to second place. The displayed data is not a system error, because a day before the jump, the situation was as follows:

On that day, no events occurred on the exchange that could lead to such a serious growth. In addition, from the point of view of verification, the volume data can be supported by evidence: for example, the demonstrated jump could be the result of user activity, the role of which, in fact, was executed by the bots.

At the same time, the technical nature of the operations (the fact of activating the bots) may not be disclosed. Accordingly, LBank is able to provide the proof of volumes “on the paper”. At the same time, its status of the exchange will remain fictitious with the largest turnover.

Short slide

Another common practice in the operation of digital asset exchanges is to work "down". Usually, the plan is to inject panic deliberately, followed by extraction of profit. In detail, the work is as follows:

- The stock exchange goes for unscheduled maintenance.

- There is a panic among users, because in the history of cryptocurrency many serious problems were hidden under the phrase “maintenance” that could lead to the closure of the site and the loss of funds from traders.

- With the opening of the exchange panic sales begin: users, under the fear of losing their money, withdraw digital assets to fiat.

- Taking advantage of the panic, the representatives of the exchanges begin to “short”, earning on lowering.



In this way, sites turn predictable users’ reaction into their own profit.



Lack of opposition to bots



Popular tools that allow you to control price indicators and even create trends are bots. With their help, you can create a variety of operations that don’t require the costs of assets, the volume of which regulates market data. Most exchanges are not able to fight bots. Accordingly, the data of their course can seriously differ from the actual indicators of supply and demand.



https://www.youtube.com/watch?v=r4DvvCWAUEU



(an example of a trading bot)

Inadequate work rules

Before starting work, each digital asset exchange offers its users to familiarize themselves with the rules by ticking “I agree with all points”. Unfortunately, not every user actually reads what is written: in some situations, the language barrier is to blame (in most cases, the rules are not translated into Russian), in others - commonplace laziness.

Digital asset exchanges, using the loudness of their name, form user-friendly agreements that are convenient for them, which may include clauses that allow:

- to change the rules without warning;

- to block user accounts without explaining the reasons;

- to give the information to third parties and so on.

However, even if the user has decided to familiarize thoroughly with the presented standards, a dilemma may arise: the rules may not meet his requirements, and consent to the work will become necessary, since there are no alternatives (similar in terms of site parameters).

Amanpuri: the fight against the system

The team of Amanpuri platform, seeing the problems that cryptocurrency users face every day, decided to use the shortcomings of other platforms as a material for processing. Thanks to someone else’s mistakes, a truly honest and open exchange can come into the world.



The chosen approach allowed Amanpuri to communicate with the audience. Plasticity of the site provides access to timely introduction of adjustments, step by step bringing the exchange to the perfect form. As a result, its users will be able to receive high-quality service and protection from deception, which they encounter when working on popular sites.

Summarize

Thus, the loudness of the site name and the indicators of its volumes are far from a guarantee of quality. Unlike its competitors, Amanpuri allows users to be the main link in their ecosystem, thanks to which it can provide the optimal conditions for a comfortable work with the digital assets.

Our information links.

HP

https://amanpuri.io/tokensale/

Telegram

https://t.me/amanpurichat

Twitter

https://twitter.com/amanpuri_ex

Facebook

https://www.facebook.com/amanpuriexchange/

Bitcointalk

https://bitcointalk.org/index.php?topic=5116010