Binance Market Exposes 'Phantom Orders', How Can Small Investors Respond?

Recently, many traders on Binance have noticed some irregularities: large orders suddenly appear in the order book, pushing the price up or crashing it down, only to mysteriously disappear again. These actions are usually carried out by large players or bots, disrupting the market and causing losses for small investors.

Common tactics include:

'Fake Orders': Placing large fake orders to mislead people into thinking the price will move significantly, then quietly canceling them.

'Wash Trading': Pretending to buy and sell to inflate trading volume and mislead traders.

These tricks create a chaotic market, making it even harder for ordinary traders to make a profit. So what measures can Binance take to curb these behaviors?

How Does Binance Combat Market Manipulation?

Identifying Fake Orders: Using technical means to identify those orders that appear quickly and disappear just as fast, and then blocking them.

Severe Punishment: Taking action against accounts involved in manipulation, such as those engaging in fake orders or wash trading, to show them consequences.

Controlling Bots: Limiting the influence of bots that create artificial price fluctuations.

Increasing Order Book Transparency: Requiring orders to remain active for a period to ensure that all visible orders are legitimate.

Protecting Traders: Educating users on how to avoid traps and providing them with better risk management tools.

Why Does Binance Need to Act Quickly?

If Binance wants to maintain its position as the top exchange, it must take concrete actions to protect users. Small traders are the backbone of the cryptocurrency market; if they feel the system is unfair, they will move to safer, more transparent platforms.

Rebuilding trust hinges on eliminating fake orders and manipulative tactics. The future of fair trading depends on this.