12. Spoofing/wash trading

CEX platforms can create the illusion of pessimism or optimism in the market by placing big buy/sell orders without the intention of filling them.

Since the order books are public domain, this gives the illusion of volume, consensus, and a thriving or declining market to guide the market toward or away from a specific set of prices.

The manipulated market movement in the books is all smoke and mirrors and has the purpose to solely manipulate the market perception of a specific coin to increase or decrease its value by influencing the platform users to sell coins cheap or buy coins high.

NEXT - 13. Pump and dump

12. Spoofing/wash trading

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