As institutional traders cast a critical eye on crypto, concerns over fake exchange volume re-emerge
An anonymous institutional trader is the source of a story alleging fake volume on the San Francisco-based exchange Kraken. Claiming that just a $10,000 ETH order can be enough to push the price down 4%, the trader infers that daily volumes on Kraken (which number $12M per day for ETH) aren't what they appear to be. He says: 'We are not talking about poor execution on an illiquid token. We are talking about the most liquid token on the planet and execution on the platform that is nowhere near where other exchanges are executing at the same time. That shows complete lack of liquidity and market makers, and a complete disregard for real investors who believe Kraken is offering best execution.'
Suspicious behavior on Kraken exemplifies the gap between crypto and legacy market structure
"In a later conversation with The Block, the trader said they believe Kraken’s liquidity is clearly not what it’s actually reporting, and that the exchange could be allowing algos to 'stop hunt' by providing data on where they sit in the order book."
Smoke and Mirrors: More reports of rampant wash trading detected among large crypto exchanges
"Crypto Integrity, a project aimed at fraud detection and forensics within the crypto market, released a report that analyzed real order book depth on select liquid trading pairs and found that up to 88% of reported volumes in February were artificial at some of the highest reported volume exchanges. On some less liquid trading pairs, the group estimates up to 100% of the volume is fake."
The Lightning Network Reference Rate
"This is not a proposal for any changes to Lightning Network itself, nor a call for all nodes to share fee accrual data. Nodes will elect for themselves whether or not to share data, and most will likely choose not to do so. The formula is merely a suggestion for developers trying to capture the economics of payment routing."
Schnorr Signatures & The Inevitability of Privacy in Bitcoin
"Ultimately, the adoption of stronger privacy mechanisms on Bitcoin’s base layer will further empower its users and, at the same time, could contribute to the creation of a vibrant fee market after the last bitcoin has been mined. My guess is that it all starts with Schnorr’s activation, which everyone seems to be onboard with."
How a Bitcoin Evangelist Made Himself Vanish, in 15 (Not So Easy) Steps
"Mr. Lopp viewed the exercise as something of an experiment, to find out the lengths he’d have to go to extricate himself from the databases and other repositories that hold our personal information and make it available to anyone willing to pay for it. That helps explain why he was willing to describe the steps he’s taken with me (though he did so from a burner phone, without disclosing his new location)."
Price War: A new type of attack on stablecoins
"Competition among these stablecoins will be fierce and projects have incentives to attack other projects to gain market share. Some attacks are legal business practices such as the speculative attack Soros used to attack the British pound. The same method was also used to attack Tether in October 2018. In this article, I am demonstrating a hypothetical attack using a common legal business practice — a 'price war.'"
Alex, I’ll Take “Blockchain” For 500
"Incumbents in their desperate fear of going extinct throw resources behind cutting edge technology. They staff teams to work on nanotechnology, artificial intelligence, data science, internet of things — and yes — blockchain before they have a strong sense of WHY. This is innovation theater: a performance enacted by incumbent companies to demonstrate that they are still fresh, innovative, on the cutting edge. This week we are diving into enterprises and their experimentation with blockchain (not bitcoin)."
30 Years On, What’s Next #ForTheWeb?
"The fight for the web is one of the most important causes of our time. Today, half of the world is online. It is more urgent than ever to ensure the other half are not left behind offline, and that everyone contributes to a web that drives equality, opportunity and creativity. The Contract for the Web must not be a list of quick fixes but a process that signals a shift in how we understand our relationship with our online community. It must be clear enough to act as a guiding star for the way forward but flexible enough to adapt to the rapid pace of change in technology. It’s our journey from digital adolescence to a more mature, responsible and inclusive future."
US Treasury Sanctions Russian Bank Over Links to Venezuela’s Petro
"The Treasury announced Monday that its Office of Foreign Assets Control (OFAC) has added Evrofinance Mosnarbank – which is jointly owned by Russian and Venezuelan state-owned firms – to the Specially Designated Nationals List, as it was the “primary” international bank that helped finance disputed Venezuelan president Nicolas Maduro’s “failed” petro project."
SEC’S FinHub to organize local meetups
"In an attempt to engage more businesses, the U.S. SEC’s Strategic Hub for Innovation and Financial Technology (FinHub) is organizing a series of local peer-to-peer fintech-related meetups, the SEC announced on its website. The first meetup will take place in the SEC’s San Francisco Regional Office on March 26. Entrepreneurs will have an opportunity to ask questions or discuss issues with FinHub representatives. Moreover, fintechs will have a change to give the SEC feedback and 'inform the SEC's understanding of new financial technologies.'"