Topic: What's the biggest taboo about exchanges no one ever talks about? (Read 346 times)

Do you really think someone will tell you this? Oh cmon

It's always been price manipulation and using bot trade to do wash trade, and pump, and dump they are doing this to have a good standing in the market and of course for investors to believe them that many traders are using their platform.
Big and small exchanges are doing this, to stay in the competition or move ahead of the competition.

Wow! the illegal KYC selling to the dark web is something I am hearing for the first time! Do you have any news articles or proof of this, it would be great to know more about it! :O

Thanks for sharing, I have looked more about this before and had some experience or inside information on how they are listing new tokens, Pretty much exchanges are charging money for the listings not most of them but the biggest ones are doing it for sure! I have a sneaky suspicion that the shittier ICO's might pay for the listing in some portion with their tokens so the second they list it the exchange is dumping everything they got paid whith. Not to mention the standard ICO investor who just bought at the offering and looking for the first opportunity to dump it and make a profit. It is sad to see this, even if the project itself is solid but chooses to get more exposure by IEO it just gets dumped on and future plans might be drastically affected by this move.

WOW! thanks for sharing! I have never seen anything like this. Actually that makes sense how the zero commission exchanges make money, but the scarier question is if this is only the Chinese functioning model or this might be more widespread?

That's huge who do you think they are achieving this? making fake accounts and rewarding them? or is there something I am missing, what does user information has to do with this? Thanks for posting on my board!! if you have anything interesting to tell I am always happy to learn!

Thanks for responding, I am learning more and more about it do they use bots to trade with them selfs to give a boost for the volume especially that tacking would be great on zero tax trading exchanges. What other ways would they do this that you are aware of no one talks about?

I think some trading platforms have made money laundering through reward programs. I am not sure but user information issues are not absolutely guaranteed.

One practice to note is the aptly named shadow banking. Chinese exchanges OKCoin and Huobi were caught secretly borrowing CNY from their depositors and using it to purchase high yielding investments like Chinese debt instruments. You can read more about that here. Arthur Hayes from BitMEX actually speculated they were shadow banks years before evidence came out.

Maybe newbies need to learn as well about IEO listings from crypto exchanges because even the not-so shady ones are also doing it. The first time I saw IEOs it was given a good expression from the members of the community as you will find it reliable that the exchanges will be offering the cryptocurrency to you this comes with the background checks that the ICO is legit and gives confidence to the prospective buyers that they will gain from it because they are directly buying from an exchange. It was good at first but now you'll see some exchanges take advantage of it that even shitty ICOs are now being listed in IEOs. I see that this exchanges also have a big position in these IEOs that is why they are participating in pump and dumps as well, it's either that or they have a big portion of the IEO's sale.

Bitfinex touched me inappropriately. I haven't been quite the same since.

Other than that I'm surprised at how rarely the idea of an exchange front running its customers comes up. It must still be rampant amongst the fuckhole exchanges and I'm sure the bigger ones indulged in it too. Why wouldn't you when there no was mention of legality or not?

These days anywhere that values its future wouldn't do it but no one knows what's going on behind the scenes with any of them.

Well, something that the Exchanges always look for and that many do not know is that they offer investors plans, they propose to invest, suppose some amount in millions of usd they change to Tether so that they guarantee 40-50% in a period not exceeding 3 months, but the action that emerges from the Altcoins of raising and lowering and of bitcoin arises from the money enters and leaves the market and does not stay, because what they do is hunt to guarantee the performance to their customers.

When a currency is listed there is a maintenance fee for the order book, a fee is established in case you want to place servers to operate your own currency obviously the rate for each transaction made and the usual that is the market creators package where the currency is given and also guarantee profits, because they know where their supports and resistances are.

Maybe KYC traps from crypto exchanges are least talked about these days. It happens to a lot of people registering to popular exchanges and after depositing money they'll be surprised by a KYC requirement in order to use the account they can't even withdraw the funds they deposited in the firat place. This pisses of a lot of people who don't like KYC fooling them that there is no KYC requirement and all they need to do is to register and deposit money to start trading.

The thing that gets me is that these things are widely and openly talked about, but the majority of people don't seem to care. It's the same behavior that we saw during the 2017 bull run with altcoins and ICOs. People widely talked about how Bitconnect, EOS, TRON, VERGE and so forth were complete scams, and yet others kept sending money they would never see again to these useless projects.

It is widely talked about how shady Bitfinex is, how they are insolvent, how they lied about Tether being backed up, how they printed $850 million out of thin air and gave it to themselves to stop them going bankrupt, how they illegally traded in the US, and so on, yet people still use them.

It is widely talked about how shady Coinbase is, how they paired up with an organization which manufactures surveillance technology for dictators, how they listed a bunch of shitcoins because their shareholders were bagholding and wanted a market to dump them on, how they sold users' data to third parties without their knowledge or consent, yet people still use them.

It is widely talked about how many exchanges exit scam, disappear, go bankrupt, get hacked, spring mandatory unannounced KYC requirements on their users, and yet people still leave their coins on them long term.

One of the great things about this forum is that there is very little that gets "swept under the rug". Everyone is free to discuss any issue with any platform without censorship. The issue is that lots of users are very careless with their money.

I think you should respond to his full sentence. He's not asking about taboo per se but 'exchanges taboo'. Your reply is nowhere close what OP wants to discuss about.


Additional activities that some exchange might do:
- Selling user KYC data.
- Selective scamming with KYC.
- Doing fake ICO to gain additional BTC (Yobit?).
- Terrible ToS, only protect the exchange but no real help for the users (like having a rule where a user should not post their issue publicly and instead have to chat the support, because if they do that then their funds or account will be locked).
- Allowing deposit but blocking withdrawal.
- etc.

Your choice of words is not correct. When financial problems happen to the platforms, they turn to deception with a pointless warning to members.
What I mean by my words is like what  BITKER^[1] did. They scammed with a simple alert to withdraw their money within a short period of time, there is no respect for customers, nor even a confession of guilt.
There is price manipulation, greed, and other things that they collect with traditional banking systems.

[1] BITKER Hacked?

Actually, I think every one talks about these things too much sometimes. You just have to go on cryptotwitter subscribe to coindesk or cointelegraph, and the bad news will keep pouring in.

• Wash trading, check!
• Insider trading, check!
• Scamming, check!
• Fake volume, check!
• Fake deaths, check!
• Mt. Goxxing, check!

The truth is, sometimes, the money will blind people with the opportunity to "live their dream life" and it often ends badly. But at the end of the day, it's not the 'exchanges' per se, that perpetrate these things - it's humans. For as long as humans, are tempted with greed, are weakened by desire, then things like these will continue to happen.

What you want, shared, read somewhere.

You talk about "taboo" meaning and the true meaning of taboo is broad,
if there is talk on this forum I can interpret:
Examples of Taboo Activities.
1. Prohibition / end.
2. Spamer / copy paste.
3. Multi accounts.
4. Illegal advertisements / unofficial campaigns on the Bitcointalk forum.
5. Hacking.
6. accuse, without evidence.
7. Threats, etc.

Is this what you mean? Possible, guesses.

Or you want another meaning about taboo. Like this.

1. Taboo
2. Taboos: Why people don’t talk about them, and why maybe they should
3. What is something that is true but taboo to talk about in our society?

Confusing.

Brainboss already mentioned most, if not all, of exchanges' shady activities.

When it comes to manipulation, one specific method they do that I really dislike is the sudden maintenance of these exchanges. They would even lock or disable traders deposit addresses. 

Additional with this will lead to the 'pump and dump' activities of some crypto exchanges.
Especially when a particular exchange are involve in volume manipulations, it will really lead to 'pump and dump' activities.