Hi TeeGee. Good to hear from you too. BTW... I received Alan's book, thank you. I'm half way through it.
For some reason, I enjoy watching numbers go up and down. I look for patterns, etc. So, for the past couple months, following dnotes (and others), I haven't noticed anything too out of the ordinary. Certainly I could spot a bot here and there, nothing too major. However, that last day or so it's been non stop at Poloniex. Especially when Bitcoin is on the move (either way). Yes, when it hits it programmed percentages, it starts activating. I know it's hard for a low volume market like dnotes not to be influenced by whales or bots for this matter.
It's not so much about what the price is, it's that the bot(s) are controlling both sides (sale & buy) at the same time. The bot is essentially determining what dnotes price is, not the traders. 90-95% of all orders on the top pages are all from the bot (big, little and all the fill in 5 dnote orders). It'll actually trade (small amounts) with itself. To set the "current price". It'll put 10 or so, sell and buy orders in, by the time it would take a manual order for 1. The bot's orders will slide up and down the price range within seconds, then off, then on...fast. Not humanly possible. There are very few sell orders on the books. (less than 10 btc, and all way down there) It looks like most people are just on the sideline maybe waiting to instant buy at the right price, or not interested in fighting with a bot. Yes, in some cases, people are just waiting to see where btc is going, then getting in.
I get it, I'll probably have to live with it, but not the free market I think we should expect. In part, I would like to know if a particular exchange will or will not allow bots. There are many ways an exchange could control/stop the robo trading, and think those steps could help instill confidence in it's users. Right now for me, not much confidence in price discovery. Hopefully, as you say, with more volume the real price will be discovered (up or down). Until then, I'll be looking for a new exchange that works for it's human customers.
Cheers!
Hi Denver Dan. Sorry to hear that you're having trouble with the bots. This is our future, and while we might be smarter than them for a while yet, they are already much faster than us. I went and had a look at DNotes on Poliniex. While my eye is certainly not as trained as yours, it did seem to me like the shenanigans were still going on. Ha, bots don't sleep either.
I think that while it makes it really hard to beat them in making short term profits, they will possibly effect DNotes less than other cryptocurrencies because it is positioned as a long term investment. I think when DNotes 2.0 comes out, with their POS rewarding around the 2% mark, it will be even less of a long term problem.
But most of all, I'd like to thank you for pointing out an example of what I was only speculating about. I hadn't expected anyone to be targeting DNotes. Especially when there are so many other more volatile coins out there to play with. Maybe there's a wanna-be-spoofy for every alt-coin, using their relative weight for advantage.
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