Manipulation has been marring the reputation of the crypto market for quite some time now. People hold themselves back from entering this volatile space owing to the alleged manipulation that is done by large whales in the market.
Talking to BlockPublisher regarding the presence of manipulation in the crypto market, the Founder of Morgan Creek Digital, Jason A. Williams stated:
Wash trading is a killer. There is a lot of volatility in certain assets which makes day trading pretty good. But pump and dump schemes and quant trading make it a dangerous game for speculators.
Previously, Anthony Pompliano, one of the well-renowned personalities in the crypto arena, while talking to BlockPublisher, stated:
Manipulation is absolutely occurring and needs to stop.
Manipulation has also been one of the critical reasons why a crypto-linked exchange-traded fund (ETF) has not been approved by the regulatory body in charge, the United States Securities and Exchange Commission (SEC). Volatility is also present in the market on a big scale. Sudden jumps and drops in prices shown by the major cryptos in the game make the general public question the credibility of the game.
The trust and acceptance among the general public regarding the crypto market as of now are very very low. In order to drive this market towards more mainstream acceptance, issues like manipulation need to be stopped as soon as possible.
In order to tackle this issue and establish more trust among the general public and investors, institutions like the SEC and other global regulatory bodies need to join hands, as suggested by the board member at BICRA, Thomas Power. The nascent market of cryptos has a chance of going mainstream only after issues of such kind are solved.
Also, regarding the possibility of cryptos replacing fiat currencies in the future, Jason stated:
They will be an addition to not a replacement for.
The prospects offered by cryptocurrencies are limitless and certainly make them a potential candidate to replace fiat currencies. The idea of transcending borders and establishing a global financial framework makes cryptocurrencies stand out in the eyes of different companies across the world. But despite all these, the possibility of cryptos completely overthrowing the currently established financial framework seems bleak.
Fiat has its roots embedded deeply in the financial framework in the modern world. Although cryptos might see widespread adoption after the issue linked to them are resolved, it is likely that blended outcomes will prevail in the coming future as suggested by Jason A. Williams.