Manipulation has been present in the cryptocurrency world from the very beginning. Some people believe that price manipulation is prevalent in the crypto space on a scale never imagined before. Big whales in the community have all the major strings in their hand linked to this market. So, how do we solve this important issue that is damaging the reputation of the cryptocurrency market in the financial industry?
Thomas Power, a famous crypto enthusiast, board member at 9 Spokes, The Business Café, Electric Dog and Digital Youth Academy seems to be of the view that in order to solve this ever-important issue, higher level regulatory bodies like the United Nations Securities and Exchange Commission (SEC) should unite with other such global institutions to tackle the situation.
Upon inquiry by BlockPublisher regarding the solution of the manipulation issue, Thomas stated that:
SEC and global institutions unite to fight market manipulators who [are] harming BC/Crypto brand and preventing market liftoff.
In the recent past, we have also seen regulatory bodies like the SEC rejecting the establishment of an exchange-traded fund (ETF) for bitcoin and other cryptos owing to the fraudulent activities and manipulation that is present heavily in this arena. Manipulation has been one of the major issues that are linked with the crypto universe.
In January, major concerns were put forward to the public by the regulatory body SEC concerning the approval of an ETF. The concerns that were put forward were regarding valuation, liquidity, arbitrage, custody, manipulation and other risks associated with the crypto market. Concerning the issue of manipulation, the regulatory body stated that:
The Commission has also discussed concerns relating to the risk of fraud and manipulation in cryptocurrency markets in orders denying exchange proposals to list the shares of commodity trusts that would hold cryptocurrency. In addition, a number of recent media reports have highlighted a range of possible vectors for potential manipulation of cryptocurrency markets. Although some funds may propose to hold cryptocurrency-related products, rather than cryptocurrencies, the pricing, volatility and resiliency of these derivative markets generally would be expected to be strongly influenced by the underlying markets.
All in all, manipulation is one of the major factors holding people back from entering the market of cryptocurrencies and needs to be solved as soon as possible for the growth of this market.
Also, regarding the prospect of cryptocurrencies replacing fiat in the future, Thomas seemed to be of the view that we will most probably see blended outcomes. Upon inquiry by BlockPublisher regarding the chances of cryptos replacing fiat in the coming time, Thomas stated that:
No blended outcome most likely.