Why exchanges constantly expose you to the risk of losing your capital. - page 3.

Zadicar

legendary

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DGbet.fun - Crypto Sportsbook

Quote from: Reid on March 25, 2019, 07:56:55 AM

And that is also why many are selling on the first listing which they thought is the bounty hunters fault.

They should really look into this.
This could also stop the dumps that is happening in exchange for just a little amount of USD. That way the trust to crypto currencies could also be back.
We are losing supporters, better make a way to get them back.

Bounty hunters do always took the blame when it comes to first listing and then the price dumps.

About on the thing you do said,being optimistic to get them back isnt bad but doing it is the most hardest part.

Reid

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And that is also why many are selling on the first listing which they thought is the bounty hunters fault.

They should really look into this.
This could also stop the dumps that is happening in exchange for just a little amount of USD. That way the trust to crypto currencies could also be back.
We are losing supporters, better make a way to get them back.

Xampeuu

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Enterapp Pre-Sale Live - bit.ly/3UrMCWI

right, they gave a warning on the front page. I think this aims to make bitcoiners learn the risks first before deciding to participate in this business, so they don't regret taking the risk later

Beerwizzard

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Quote from: Tytanowy Janusz on March 25, 2019, 05:54:07 AM

Quote from: Beerwizzard on March 25, 2019, 05:49:00 AM

get some money from fees then they will definetely get it.

They would get fees even with fixing. All trades in first moment after opening will be done at price set during fixing (like on stock market) not with random price as its now.

Right now, without any artificial barriers they have more volume and they are getting fees out of this volume. Any attempt to stop it should cause a volume decrease.

Quote from: Tytanowy Janusz on March 25, 2019, 05:54:07 AM

Quote from: Beerwizzard on March 25, 2019, 05:49:00 AM

Also crypto exchanges are working 24/7 so it is a bit different from your example.

I'm talking about coins listing not everyday trading on listed coin.

Projects are paying pretty big money to get their coins listed. Also exchanges ask projects to provide "market making activities" and it seems like they don't really care about the way it will work untill they are getting well paid.

Tytanowy Janusz

legendary

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Quote from: alisafidel58 on March 25, 2019, 06:03:32 AM

Quote from: Tytanowy Janusz on March 25, 2019, 05:54:07 AM

Its not limiting. Its letting them buy coin at opening with accurate price instead of random price.

Have you ever heard of "Pump and Dump"? On newly listed coin? If you manage to hear it then that's the answer.

Its not pump and dump. Its finalizing orders order by order instead of with fixed price set by traders during fixing (like on stock market). You know how its done now?
1- Exchange opens setting orders
2- first user create sell order at x100 just for fun
3- second user create market buy order
4- third user create sell order at x1.2 for small profit
5 - fourth user created market buy order (0.01 sec after guy from point 3)
6- ......
n - n user created sell order at 0.8 of last price on other exchange
There are n-1 orders on market. And they hanging for moment that exchange will open trades.

Then exchange opens trading and is finalizing orders order by order. Means that guy from point 3 will buy with 100x price (because that the only wall that is on market that his buy order can hit in) and guy who made exactly same order type 0.01 sec after will buy at x1.2 price (because currently that's the lowest price available). That's ok for you? Or that's the stupidest way to open trades during listing and its done like that only to scam users.

alisafidel58

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Quote from: Tytanowy Janusz on March 25, 2019, 05:54:07 AM

Its not limiting. Its letting them buy coin at opening with accurate price instead of random price.

Have you ever heard of "Pump and Dump"? On newly listed coin? If you manage to hear it then that's the answer.

Tytanowy Janusz

legendary

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Quote from: Beerwizzard on March 25, 2019, 05:49:00 AM

get some money from fees then they will definetely get it.

They would get fees even with fixing. All trades in first moment after opening will be done at price set during fixing (like on stock market) not with random price as its now.

Quote from: Beerwizzard on March 25, 2019, 05:49:00 AM

Also crypto exchanges are working 24/7 so it is a bit different from your example.

I'm talking about coins listing not everyday trading on listed coin.

Quote from: alisafidel58 on March 25, 2019, 05:50:59 AM

I guess that how the market goes and why would exchanges limit their users? Limiting traders is not essential to exchanges. AFAIK there are no exchanges that limit their traders.

Its not limiting. Its letting them buy coin at opening with accurate price instead of random price.

alisafidel58

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I guess that how the market goes and why would exchanges limit their users? Limiting traders is not essential to exchanges. AFAIK there are no exchanges that limit their traders.

Beerwizzard

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Quote from: Tytanowy Janusz on March 25, 2019, 05:41:18 AM

So wheel is already invested.

Ah whose wheels... they are investing in everything!

Quote from: Tytanowy Janusz on March 25, 2019, 05:41:18 AM

Why exchanges do not apply that? The only explanation is that they are letting their users to buy coins 100x higher for their own profit. Perhaps they are manipulating with order of orders that way that their coins are being sold on the top of that 1 min candle with 10-100x profit. Avoid creating orders in first 5 min of any listing. You will mostly loss majority of them.

Well, you know the main answer. Crypto exchanges are not that regulated as traditional ones so if they have a chance to get some money from fees then they will definetely get it.
Also crypto exchanges are working 24/7 so it is a bit different from your example.

Tytanowy Janusz

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Almost every listing looks like that:

Those spikes on first candle in most cases happens in first 1 min - 5 min. Does exchanges really don't know how to prevent their users from buying coins 100 times higher by market buy? If chart is that high means that someone bought that high and someone sold that high. That's crazy and so easy to prevent. None need to invent wheel. All they need to do is go and take a look how every day starts on regular assets on stock markets. To prevent that situation every day starts with 30 - 120 min fixing (up to exchange). (f.e. 120 min is for New York Stock Exchange)

Fixing (source: https://www.investopedia.com/articles/investing/091113/auction-method-how-nyse-stock-prices-are-set.asp):
The Opening Auction
While the NYSE’s official market opening time is 9:30 a.m. EST, orders to buy and sell securities can be entered as early as 7:30 a.m. In particular, the two types of orders that are accepted before the market officially opens are Market on Open (MOO) and Limit on Open (LOO). MOO orders seek to purchase shares at the current market price at the time the market opens. LOO orders seek to purchase a specific number of shares at a specific price when the market opens. If the requested price is not met, the trade does not take place.

The first data stream of the new trading day includes a reference price for each security. This price generally matches the previous night’s closing price. The data stream also includes data regarding the current imbalance between buy and sell orders and prices. By publishing this data, NYSE gives traders the opportunity to adjust their trades in order to match up buy and sell orders.

Data is published every five minutes until 9:00 a.m. From 9:00 a.m. until 9:20 a.m., it is published at one-minute intervals. For the final ten minutes prior to the market open, the data is published every 15 seconds. Beginning at 9:28, the likely opening price for each security is added to the published date stream. Orders placed between 9:28 a.m. and 9:35 a.m. cannot be canceled.

So wheel is already invested. Why exchanges do not apply that? The only explanation is that they are letting their users to buy coins 100x higher for their own profit. Perhaps they are manipulating with order of orders that way that their coins are being sold on the top of that 1 min candle with 10-100x profit. Avoid creating orders in first 5 min of any listing. You will mostly loss majority of them.

Topic: Why exchanges constantly expose you to the risk of losing your capital. - page 3. (Read 730 times)