The highly debated market manipulation with organized pumps and dumps is the negative side of the cryptocurrency. Nasdaq says they can solve this fraud that has been plaguing the cryptocurrency market. Already some exchanges are already using Nasdaq technology to detect and fight market manipulations.
Nasdaq will help to fight the Cryptocurrency Fraud and Manipulation
As indicated by Bloomberg, the U.S. stock trade exchange thinks that their technology can solve one of the biggest crypto problems – market control from some players and fraud. In a report distributed on November first, Nasdaq noticed that it had the technology and expertise in managing the complexities of the assets trading market.
The project aims to build a trading platform and is supported, among others by billionaire VC fund Tim Draper.
In the report Nasdaq states:
“Regulators, brokers, and exchanges have surveillance teams that monitor activity constantly and advanced technologies to help capture and analyze abusive behaviors including pump-and-dump schemes, insider trading, wash trading as well as spoofing and layering.”
Numerous digital currency opponents rush to point to the absence of vigorous controls in the sector as a motivating for a wide range of unlawful exchanging practices. In the U.S., the Justice Department in cooperation with the CFTC started examining claims of market manipulation in the Bitcoin.
Exchanges are Already using Nasdaq Technology
According to Nasdaq, some important players in the digital currency exchanging space areas are utilizing its market technology to fight market fraud. Some months ago some media reported Gemini, SBI Virtual Currencies, and 3 different trading platforms were utilizing Nasdaq’s technology. With more popularity in the digital currency exchanging space, the Nasdaq Smart technology seems to be in high demand.
In an interview with Bloomberg, Tony Sio, Nasdaq’s head of exchange and regulator surveillance stated:
“We’re now getting approached every week or two. We won’t work with all of these firms though since a lot of them are quite early stage or not reputable yet.”
Nasdaq is Adopting Crypto
Nasdaq is moving every day more toward the crypto industry. Many times they expressed bullish sentiment for the future of cryptocurrencies. Meanwhile their interest in cryptocurrencies and the desire to open a crypto trading exchange. The project remains tightly tied to the regulatory framework development in the crypto sector.
Would Nasdaq be able to resolve the biggest issue the crypto world has “The Price Manipulation”? Tell us your opinion in the comments below.