Investors know bitcoin’s violent mood swings well. What they often don’t know is that unscrupulous traders, wielding purpose-built software, can be behind them. Manipulation in cryptocurrencies is a growing concern for regulators—and even for some proponents of the digital coins. The Securities and Exchange Commission cited that risk in August when rejecting several bitcoin-based exchange-traded funds. The office of New York Attorney General Barbara D. Underwood highlighted the issue last month in a report warning that crypto...
Purpose - built , abusive software designed to manipulate the market is running largely unchecked on crypto exchanges , prompting growing concerns from traders and investors . While established markets such as the New York Stock Exchange have measures in place to identify and prevent unscrupulous trading , crypto exchanges are widely unregulated . Some traders say these practices are hampering cryptocurrencies ’ reputation and adoption , with a view that they threaten the market ’s stability . Yet others argue against regulation , and take the position that manipulation software should be accessible to everyone , in order to level the playing field .