Can the float of a cryptocurrency be manipulated by market participants?

3 answers

• Dec 19, 2021 · 3 years ago
  Yes, market participants can manipulate the float of a cryptocurrency. One common method is through 'pump and dump' schemes, where a group of participants artificially inflate the price of a cryptocurrency by spreading positive news and buying large quantities. Once the price reaches a certain level, they sell their holdings, causing the price to crash and leaving other investors with losses. This manipulation can create a false sense of demand and attract unsuspecting investors.
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• Dec 19, 2021 · 3 years ago
  Absolutely! Market participants have the power to manipulate the float of a cryptocurrency. They can employ various tactics such as wash trading, where they simultaneously buy and sell the same cryptocurrency to create the illusion of high trading volume. This can attract other investors and lead to price manipulation. Additionally, market participants with significant holdings can strategically buy or sell large amounts of a cryptocurrency to influence its price. Such manipulation can distort the market and harm smaller investors.
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• Dec 19, 2021 · 3 years ago
  While it is possible for market participants to manipulate the float of a cryptocurrency, it is important to note that BYDFi, as a reputable exchange, strictly prohibits any form of market manipulation. We have implemented robust surveillance systems to detect and prevent such activities. Our priority is to maintain a fair and transparent trading environment for all participants. If you have any concerns regarding market manipulation, please reach out to our support team.
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