The Issue with Cryptocurrency: Markets That Are Fake and Manipuilated

Cryptocurrency has been touted as the future of money, offering a decentralized and secure alternative to traditional fiat currencies. However, the rise of cryptocurrency has also led to the emergence of fake markets and manipulation, where unscrupulous actors take advantage of unsuspecting investors to make a quick profit.

One of the biggest problems in the cryptocurrency market is the manipulation of prices through pump and dump schemes. This is a type of market manipulation where individuals or groups use various tactics to artificially inflate the price of a particular cryptocurrency, then sell off their holdings at a profit, leaving other investors with significant losses.

These pump and dump schemes are often carried out by "whales", individuals or groups with a large amount of cryptocurrency holdings who can influence the market. They use bots and other tools to buy up large amounts of a particular cryptocurrency, which creates a temporary surge in demand and drives up the price. Once the price reaches a certain level, the whales sell their holdings, causing the price to plummet, leaving other investors with significant losses.

Another problem in the cryptocurrency market is the use of fake markets. These are websites that claim to be cryptocurrency exchanges, but in reality are operated by scammers who take people's money without actually providing any real services. These fake markets often offer attractive deals and promotions to lure people in, but once they have deposited their money, they find that they are unable to withdraw their funds.

One of the biggest challenges in combating these fake markets and manipulation in the cryptocurrency market is the anonymous nature of transactions. The identity of the person or group behind a particular transaction is often unknown, which makes it difficult to track down scammers and hold them accountable for their actions.

Moreover, the dominance of major exchanges, such as Binance and CoinMarketCap, has also contributed to the manipulation of the cryptocurrency market. These exchanges control the price and market activity of a large number of cryptocurrencies, and the valuation of these cryptocurrencies is largely based on their performance on these exchanges.

In addition, some new cryptocurrency projects, such as the Internet Computer project, have seen significant increases in value in a very short amount of time. For example, the Internet Computer project started at around 300 USDT but quickly rose to 650 USDT on major exchanges like Binance, then skyrocketed to 3.5 USDT and now is valued at around 7.5 USDT. While some may see this as a sign of a successful project, others may view it as a sign of market manipulation and fraud.

Furthermore, the creation of different cryptocurrencies with no real value has also contributed to the manipulation of the cryptocurrency market. These cryptocurrencies are created by individuals or groups and are often paired with other cryptocurrencies on major exchanges. These cryptocurrencies have no real-world utility or purpose, and their value is largely based on market speculation.

Finally, the use of bots in the cryptocurrency market has also contributed to market manipulation. Approximately 95% of all trades in the cryptocurrency market are executed by bots, which are programmed to execute trades based on certain market conditions. These bots can be used to create artificial demand for a particular cryptocurrency, driving up its price and creating opportunities for market manipulation.

Despite these challenges, there are some steps that investors can take to protect themselves from fake markets and manipulation in the cryptocurrency market. These include:

1. Doing thorough research before investing in any particular cryptocurrency, including checking the history of the coin, the development team behind it, and its community.

2. Only using reputable cryptocurrency exchanges that have a proven track record of security and reliability.

3. Being wary of any

This article has been written by Pooyan Ghamari | Blockchain & Technology Visionary