Zurcoin Co-founder: Cryptocurrency Market manipulated by Some Exchanges

As per Zurcoin co-founder Daniel Mark Harrison, almost all crypto exchanges are vigorously engaged in manipulating the market related to the digital asset, which frightens the existence of the market in the long run and primarily challenges the cryptocurrency standard of decentralization.

As per one of the posts, Harrison revealed that the exchange intention is just to steal from their potential customers through various ways which shift the crypto prices in the downward direction until the customer holdings become zero and meanwhile it enables an exchange to enhance their crypto assets holdings from the other route.

As per Harrison’s estimation, the market circumstance that reflects enhanced quantity with condensed capitalization is basically impossible, if we follow the rational market behavior. This can only be achieved from the manipulation process in exchanges with the goal of acquisition and supervision of user crypto funds which will utilize the temperament of the retail investors.

Taking Bitcoin for illustration purpose, Harrison added that in December 2017, the quantity of Bitcoin was approximately $14 billion when the market capitalization was $284 billion. In the year 2018, the volumes were whispered at $4.3 billion when the market capitalization is $59.9 billion.

This shows that although the volume of market capitalization stayed at 4% in 2017 even after a drop-in price by approximately 82% in the next 12 months, the quantity of market cap increased by 9%. Such a scenario is nothing but the smartest way to manipulate the price by exchange authority.

Harrison further added an explanation and quoted that “The cause of this behavior is clearly that running an exchange is, by and large, an extremely cost-intensive, highly competitive, low-margin business, which holds next to appeal for entrepreneurs wishing to cash in on the new digital gold rush. Instead, then, such entrepreneurs manufacture cryptocurrency volumes in the form of virtual currency trades represented uncollateralized on their exchanges, in the hope of obtaining (stealing) the majority of their customers’ cryptocurrency over time.”

As per his opinion, exchange falsely manipulates the lowest prices from the highest one due to which the customers will lose interest in the long run and such cases will initiate platform to take the custody of such crypto assets and offer the lowest amount to their owners. However, as soon as the market recovers, the exchanges earn an enormous amount of profit and make their position stronger. Further, they also get an advantage to earn a bulk profit from the stolen cryptocurrency value, which can be again reused in conducting scam activities on a larger scale.

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