Connect with us


Binance CEO speaks about market manipulation and wash trading




XRP/USD Price Analysis: No bull in sight as bearish market takes a toll on coin
Source: Unsplash

During an interview with Unchained, Changpeng Zhao, the CEO, and Founder of Binance, one of the biggest cryptocurrency exchange platform, spoke about ShapeShift’s introduction of AML/ KYC and the platform being accused of wash trading and manipulation.

On the topic of ShapeShift’s AML/ KYC, the CEO stated that determining the platforms decision from the outside without knowing the internal factors which were taken into consideration. Nonetheless, CZ believes that there was a business reason for the platform to make the decision.

CZ further spoke about the exchange platform’s internal policies and procedures concerning insider trading. He said that there are a set of rules and guidelines which are laid down in order to prevent such practices from taking place. The CEO stated that he wants his employees to hold cryptocurrencies. However, when an employee buys cryptocurrency they are required to hold the coin for 30 days before they sell the coin.

He continued to say:

“So this is a like a policy we learn from the banks are back in the banking days,that’s kind of our internal policy. We don’t, we don’t we don’t let our employees day trade and not a productive thing to do anyway, for most of them.”

Furthermore, the Founder spoke about Binance being accused of wash trading and market manipulation because of its high trade volume of “obscure” coins within a short period of time, without having any correlation with the news. CZ stated that out of the market research conducted by independent community members, Binance is the one among the exchanges in which they were unable to find any signs of trading and manipulation.

CZ stated that it is “tricky” to define manipulation and wash trading and determine the stage a trade becomes manipulation. He further added that wash trading is similar to market manipulation. He said:

“So like, let’s say Bitcoins like… 6300 US dollars on my exchange. Some guy just want to buy it all the way on Binance to all the way to $7000. The guy has lots of money and just wants to buy. So is that manipulation or is that not? It is hard to define”

He further added:

“… So it’s really hard to tell and at what stage does that become manipulation. Is it a warning, is it a price percentage difference from other exchanges. What about a point I want to trade only on one market so there’s a lot of money. So like conceptually yes, if Bitcoin is $6300 on other exchanges right now and it is trading at $7000 on other exchange then mostly likely there is some type of manipulation but how do you define that, how do you prevent that?”

Subscribe to AMBCrypto’s Newsletter

Follow us on Telegram | Twitter | Facebook

Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.


Cryptopia: New Zealand Court grants 10 extra working days to present its first liquidators report





Cryptopia: New Zealand Court grants extra 10 working days to present its first liquidators report
Source: Unsplash

Cryptopia, the defunct New Zealand cryptocurrency exchange, announced that there was an update with regard to the first liquidation report. The exchange stated that the New Zealand Court grated the platform ten extra days to present the report, with the date now scheduled to 4th June 2019.

The exchange stated on its official Twitter handle,

“The New Zealand Court has granted a 10 working day extension on the initial Cryptopia Ltd Liquidators report. It is now due on 4 June and will be available on the New Zealand Companies website when it is submitted”

Sean Crypto Phillips, a Twitter user stated,

“I hope that the liquidators understand that the coins are funds held in trust, not general assets of Cryptopia, so should be returned in full and without conversion. Also, I will be interested in any news of recovery from amounts sent to Huobi, although my balance was intact.”

Currently, the exchange’s website continues to be under maintenance, with the site displaying the press release pertaining to the liquidation process. According to that announcement, the liquidation process is handled by David Ruscoe and Russell Moore, representatives of Grant Thornton.

The exchange had decided to take this path because of the security breach that occurred earlier this year in January. Notably, the exchange fell victim to two attacks with the hacker gaining control over all of its Ethereum funds. At present, “the liquidators are focusing on securing the assets for the benefit of all stakeholders.” The investigation conducted by Grant Thornton was reported to take months instead of weeks, with the first report set to be released in the coming month.

Aside from this, the exchange also made headlines when the attacker had started to move the stolen Ethereum funds to different wallets and exchanges, which includes Huobi and EtherDelta. Huobi, a leading centralized exchange, released a statement concerning this incident on its official social media handle. The platform stated that the stolen funds were automatically detected by its system, following which it was immediately frozen.

Subscribe to AMBCrypto’s Newsletter

Continue Reading