Is the market being manipulated?
Many traders on Binance have encountered strange occurrences: when a large order comes in, the price shoots up and down, and then that order disappears. This is often done by large players or bots, and when they do this, the market becomes unfair, and small investors suffer.
Common tricks they use include:
Scams: Place a large order, pretend to move the price, and then quietly withdraw, luring others in.
Fake trading: Pretend to buy and sell, making the trading volume appear active, but it's all a deception.
These tricks disrupt the market, making it harder for ordinary traders to make money. So what can Binance do?
Possible actions Binance can take:
Investigate fake orders: Use technology to identify orders that appear quickly and disappear just as fast.
Punish the bad actors: Penalize accounts that engage in manipulation without hesitation.
Regulate bots: Prevent those bots that disrupt prices from succeeding.
Transparent order book: Orders should remain visible for a while, allowing others to see if they are real or not.
Protect traders: Teach everyone how to avoid pitfalls and provide some good tools to reduce risk.
Why does Binance need to act quickly?
If Binance wants to remain the leader, it must demonstrate that it can protect its users. Small traders are the backbone of the market; if they feel it's unfair here, they may go elsewhere, seeking safer and more transparent platforms.
To rebuild trust, it must block these fake orders and manipulative tactics. Fair trading depends on this effort.