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Before the exchange, there was a mode called 'selling air' for cryptocurrency trading.

There are typically two kinds: one is like FTX, which allegedly misappropriated customers' BTC to sell, but in reality, it can be divided into two types: one is transferring to competitors, for example, if a customer has a total of 300,000, they keep 200,000 in their own exchange while secretly selling 100,000 in a competitor's exchange. (To address this, Binance and OKEx later introduced reserve proof systems to bolster confidence). The other is the over-selling to their own customers within the exchange, where nominally a customer holds 400,000 coins, but in reality, 100,000 of those were sold by the exchange to its own customers, as many people do not withdraw to the blockchain and leave their assets in the exchange. At this point, the exchange effectively acts as a short seller and a counterparty.

This is why before FTX's bankruptcy, SBF wanted to drive the price of BTC below 20,000.

This is also why major exchanges collaborated to crash and inject liquidity into the market before 2021.

In the case of altcoins, this is actually less common, but during periods of hype, many exchanges will still engage in data-driven 'selling air' for coins, especially smaller exchanges. Do larger exchanges not do this? No? Hahaha, as long as the exchange itself participates in the market as a retail counterparty and is not an investor in VC coins needing to purchase coins from the market, it certainly happens.

Now it’s interesting, smaller exchanges are pressuring larger ones, openly starting to engage in data-driven buying and selling. They call it pre-market trading for perpetual contracts.

That said, they won’t go against money; let’s see if they can manage to earn some profits.