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This is just a quick report on something that I am currently investigating, as I have been off-0x for a while. However in respect to two large Cryptocurrency Trading companies, and the trades in respect to Trading Bots, run by the said two companies - I have a suspicion that companies are using Trading Bots in what looks like they are performing algorithmic skimming of accounts... if so... is this a crime?
I cannot name the two companies I am investigating as of yet... but forewarning to any Crypto Trading companies that I am close to figuring out the source code of the said algorithms and will be following the measures up with SEC... even if I hate SEC, something needs to be done about what I see as criminal activity.
With that what is the suspect trading that these Trading Bots are carrying out?
So far I am not seeing the pattern with large trades or risks... what I have been doing is following a series of low level investment punts at the said two trading organisations - this is not to say that this potential scam and crime is not happening to higher bids and trades as I am just not willing to risk thousands of dollars to prove the scam. So with that I have been creating 10 trades at each facility and watching the trades measure up via four other separate computers and associated screens... again I cannot show you the results, as I cannot yet name the two organisations... let me tell you that these two companies are huge, possibly the two largest trading platforms in the Crypto World - but trust me on this... those screens did not match up to the trades and the trading values of the said tokens trading upon, and every single token took a dive immediately after trading. With all this playing out... the premise is... surely there is a huge problem, this is in no way a timing glitch or hanging via computers... the four computer screens showed very different trading values to the trades I had placed... can you imagine my confusion that each trade had on one screen a higher token value to the trades taking place which had been showing my token values at at least $1 under the actual trading price... this is not about trades going red as soon as they are placed, but undercutting value of a coin with a trade to create an air of panic with the punter risking trades, who in turn will pull the trades at a loss. Maybe you have seen such things happen, then the said tokens suddenly jump in price as the trade ends. Clearly when this happens just once or twice it is just bad trading, but on every single trade for two days this happened... then suddenly after issuing an email to question the possible "WTF is going on?" The activity stopped... within hours. My trades have returned to normal and are not glitching out... I use the term glitching out very loosely here... I prefer BOT SCAM!
Clearly within the algorithm at these two trading platforms, trading bots have been placed into the algorithm to skim the risks of unskilled traders and newbies... and for sure those who are experienced can see a clear problem... those experienced traders may just think 'bad risk trade' and may return some hours later to find the problem gone and return to trading.
So here is where I am going to ask my readers to comment on their recent trades and if they have noticed any suspicious trading bot activity, and if you have please name the companies in the comments... this way I can see if the two companies I am reporting upon, appear in the comments. I will obviously update this report in time and name and shame the two companies in due course.
Let the experiment begin...
