Probably the most substantial value propositions of Bitcoin (BTC) is the fact that no-one can create much more of it aside from its fixed supply. However, a professional from the crypto exchange designed a bold declare that some exchanges can make then sell BTC measuring only within their system, this is not on the blockchain, to control the marketplace.
Within an interview with Cointelegraph, Serhii Zhdanov, the Chief executive officer of crypto exchange Exmo, shared his beliefs that market manipulation continues to be prevalent within the digital asset space and gave a good example of the way it can occur.
Based on the executive, if anybody desired to dump the marketplace, it’s possible to visit an offshore exchange that doesn’t undergo financial audits and request $100 million price of BTC and employ $ten million Tether (USDT) as collateral. He described that:
“The exchange just adds these funds towards the account, creating these Bitcoins only within their system. They don’t exist around the Bitcoin blockchain. The customer or internal market-making team then sells these Bitcoins equal to $100 million dumping the Bitcoin cost on all exchanges.”
To have their profits, the marketplace manipulators may then make money from arbitrage based on Zhdanov. “After the cost is lower, they’re buying the equivalent Bitcoin in a reduced cost making a profit,” he added.
The Chief executive officer stated that fighting and stopping these potential occasions require more powerful regulatory policies which are as comprehensive as the stock exchange. Zhdanov highlighted that offshore exchanges should also be controlled very much the same as tier one exchanges and have transactions between controlled and offshore exchanges be limited. With this particular, the manager believes the market is a better spot for investors of any size.
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Furthermore, the manager noticed that among the barriers to mainstream crypto adoption may be the money washing concerns. Based on the Chief executive officer, compliance and much more comprehensive regulation can make these concerns disappear. He stated:
“Crypto is really a new factor that evolves rapidly, it’s highly much like traditional investment vehicles essentially. Therefore, I believe there are lots of things we are able to borrow from the stock exchange, where rules happen to be tested over a longer period.”
Lastly, Zhdanov described that right now, malicious entities like online hackers tend to be more drawn to targeting crypto instead of banks due to holes in security. The manager noted that security is another answer to a wider digital asset adoption.
