What is a Cryptocurrency Conspiracy?
A cryptocurrency conspiracy is an allegation or theory that the prices of cryptocurrencies, such as Bitcoin and Ethereum, are being manipulated by certain individuals or groups in order to profit from market fluctuations. These theories claim that these manipulators use tactics such as pump-and-dump schemes, insider trading on exchanges, wash trading (simultaneously buying/selling orders with no intention of making an actual transaction), spoofing (placing many buy/sell orders with the intent to cancel them before execution) and other techniques in order to artificially inflate or deflate coin prices. Although there has been much speculation surrounding crypto manipulation over the years, it remains difficult for researchers to prove definitively whether this type of activity occurs due to its clandestine nature.
How Are Prices Manipulated?
Price manipulation can occur when large investors coordinate their activities through various methods such as colluding on trading strategies like “painting the tape” which involves placing simultaneous buy/sell orders at different price points across multiple exchanges in order to create artificial volatility; using bots known as “spoofers” who place high volume fake trades designed solely designed for deceiving buyers into thinking they have more liquidity than actually exists; creating false rumors about coins; “pump and dump” scams where traders band together online forums and chat rooms discussing ways they could increase their profits by inflating values then selling off quickly once those values rise enough. All these actions are intended deceive uninformed investors so that larger players can reap greater profits while smaller ones suffer losses without knowing why.
What Can I Do To Protect Myself From Price Manipulation?
The best way you can protect yourself from potential price manipulation is by doing your own research prior investing any money into a coin: read up on news articles related to it’s development progress & partnerships — make sure it’s something you believe will be successful long term — pay attention what influencers say about it & how active its developers seem within community channels etc… Additionally try not get too caught up hype cycles created around new projects & avoid putting all eggs same basket – diversify portfolio instead spread investments out over several different currencies tokens ICOs etc.. Finally consider staying away low cap altcoins altogether since they often tend attract most unscrupulous types speculators whom may engaging forms market abuse better left ignored
