Does HFT at Poloniex destroy value of DASH ???

rustycase

rustycase

Active member
Thank you for reading my thoughts on this Very important topic !

This morning, I checked the marketplace to see what the value of DASH was on the open market.

It was a shock to me.

For the last 8 hours, the normally fluctuating price/value of DASH, in relation to other coins/payment methods, had been fixed in a narrow, specific bandwidth, by someone operating a High Frequency Trading robot program.

This exercise does NOT reflect the true value of DASH. It does forcefully reflect what someone demands it shall be. ...For as long as they feel it should be so !

I shall qualify my observation, as follows:

I am a Newbie to crypto. I have seen true value in DASH. This has influenced my participation in the service.

Research, via CryptocompareDOTcom declares 82% of DASH is traded on Poloniex exchange, 8% on BitTrex, and 8% on BTCe. Furthermore, 97% of access to DASH is from hoders of BTC.

These figures are quite significant, to the extent of a crisis level, especially with an HFT Bot controlling the DASH exchange at Poloniex.

How much truth IS there in the crypto marketplace ???

According to the above statistic, 97% of access to DASH comes from BTC holders...
96% of BTC holdings are in CNY. USD is only 3%.
30% of btc is traded at BitFinEx, 14% at Coinbase, 13% at BTCe, and 7% at BitStamp exchange.

For other comparisons, 70% of ETH is traded at Poloniex and 70% of that volume comes from BTC holders.

90% of Monero (XMR) activity is at Poloniex and 99% is purchased by BTC holders.

Litecoin (LTC) is nearly in lockstep with BTC on the OKCoin charts, which I check 1st, each morning.

Please take this opportunity to verify what I have presented !

Does a solitary HFT Bot exert more influence upon DASH than Anything all the Devs, (and the best of intentions), have upon DASH ?

Does the sentiment of the dragon influence the value of DASH more than any other factor ?

Every bit of this is Newbie opinion, yet I am certain this must be discussed in detail by everyone with any interest in DASH and the concepts I feel it is meant to represent.

Thank you for your consideration !
rc
 
Yes, these bots are annoying and can push prices one way or another, but really only for so long. What they're capable of doing is giving a first impression of current price. But I think at this stage, most people are savvy and look at more than last sell price.

Either way, some of these exchanges have allowed these bots for a long time now, despite anger and complaint. It's their exchange and until we have better options, our hands are tied. What I mean by that is that if you want to sell or buy large amounts of Dash, you need the most liquidity, and that belongs to Poloniex. At least there is some freedom in other exchanges, but as a trader, you're going to go to the most profitable place, no?

When there is much more liquidity, I believe they'll be much less useful. The more liquidity there is, the more market forces are accurately followed.
 
HFT is the best business an exchange can hope for. HFT = HFCommissions. This is not too different in the stock market.

HFT can indeed alter the price of a coin. The guys doing it know people get afraid and do stupid things when the do their thing. This won't stop.

Still… HFT can not affect the price of anything for long so I don't agree with the title of the thread. No long term destruction of the value of DASH will happen.

My advice to traders is… stop trading and invest long term! Invest in DASH of course ;)
 
I think when you say HFT you are refering to trading scripts aka Bots. Bots are not good or bad. The real danger is dishonest exchanges and unlevel playing fields. Front running, special order codes, volume commission discounts, hidden orders, and order reversals are just some of the tools used by dishonest exchanges to ripoff their own customers.
 
I hate bots that up bid my buy orders by 1 satoshi been trying to buy DASH on bittrex since early July but price just keeps climbing.
 
Thanks to all.

It is my newbie opinion the crypto marketplace is too small, in relation to the Huge global markets, to avoid serious influence by the HFT Bots.

I have been studying HFT for a few days, since I became offended by them, and have learned there is a general consensus they are bad, yet there is a Lot of money behind them and it will be difficult to even regulate them.

I'm presently watching some documentaries on 'The Flash Boys', about Brad Katayuma and his IEX exchange, by Michael Lewis. It's informative. I shall buy his book.

I have not looked for a recent update on progress with that Exchange...
There was much information about 'front-runners', which is basically insider trading.

The Hollywood production titled 'The Big Short' was very good...
(Yes, it's Hollywood stuff, but I learn terminology, concepts, and such...)

If anyone would advise a link for particular information about HFT I'd be pleased to review it !

Tnx
rc
 
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