Can the outstanding shares of a digital asset be manipulated?

3 answers

• Dec 27, 2021 · 3 years ago
  Yes, the outstanding shares of a digital asset can be manipulated. This can occur through various means such as wash trading, spoofing, and pump and dump schemes. Wash trading involves artificially creating trading volume by simultaneously buying and selling the same asset to create the illusion of activity. Spoofing involves placing large buy or sell orders with the intention of canceling them before they are executed, manipulating the market sentiment. Pump and dump schemes involve artificially inflating the price of an asset through coordinated buying, only to sell it at a profit once the price has risen. These manipulations can have serious consequences for investors, as they can lead to inflated prices, false market signals, and potential losses.
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• Dec 27, 2021 · 3 years ago
  Absolutely! The outstanding shares of a digital asset can be easily manipulated by market participants. This can be done through various tactics such as spreading false information, creating fake social media accounts to promote or discredit an asset, and engaging in coordinated buying or selling to manipulate the price. These manipulations can have a significant impact on the market, causing volatility and potentially leading to losses for unsuspecting investors. It is important for investors to conduct thorough research and exercise caution when investing in digital assets to avoid falling victim to such manipulations.
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• Dec 27, 2021 · 3 years ago
  While it is theoretically possible for the outstanding shares of a digital asset to be manipulated, it is important to note that reputable exchanges like BYDFi have strict measures in place to prevent such manipulation. BYDFi employs advanced surveillance systems and strict compliance procedures to detect and prevent any form of market manipulation. The exchange also works closely with regulatory authorities to ensure a fair and transparent trading environment. However, it is always advisable for investors to stay vigilant and report any suspicious activities to the exchange or relevant authorities.
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