Is Crypto.com Involved In Market Prices Manipulation?
Crypto exchange Crypto.com is accused of manipulating market prices. This crypto exchange offers crypto trading services for retail traders. It gained popularity in the bull market. It is going through allegations of proprietary trading and manipulating market prices.
Artificially doing something to manipulate the price and take advantage of the situation to get market gain is a bad practice. It will damage the reputation of any crypto exchange. Crypto.com denied all allegations. They provide a good environment for retail traders to trade and that's the platform's primary income stream.
Crypto.com has an internal market maker that is treated as a third-party market maker. The goal is to provide an efficient market for traders and investors in the crypto exchange. The exchange always tries to lower the spreads and improve order book liquidity that helps all participants.
Nowadays a little issue can be turned into a big issue and that may be used against crypto exchanges to take legal action. You get a feeling that every crypto is a security. And if it is stated by the SEC that some cryptocurrencies are unregistered securities, crypto exchanges are too busy taking any action so that no legal action can be taken against them.
We see some exchanges and trading platforms delist some cryptocurrencies that the U.S. SEC puts a label on as securities. The social trading and investment company Etoro, and crypto and stock trading platform Robinhood already made their moves to delist some top cryptocurrencies. You as a retail trader cannot trade those cryptos on these platforms anymore.
Crypto.com suspended its US institutional exchange service. Are you wondering why this exchange did this? According to crypto.com, there is limited demand from institutional customers, so that's the reason. They also pointed out the challenging market conditions that they took into consideration to make this decision.
The demand for institutional customers is supposed to be more. Since the largest crypto exchange Binance and popular crypto exchange Coinbase are dealing with lawsuits, investors will move to other platforms to do trading and investments. Regulatory scrutiny makes it difficult to use fiat currency to invest in crypto. So any platform that offers this service, investors will be there.
I think it is a step crypto exchanges take to avoid any difficult situation from regulatory agencies. The consequences of getting a lawsuit are more difficult to handle and it can take a way long to settle that. It is better if crypto trading platforms can avoid that in any way. Let's see how everything moves forward from this point.
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They will face a really big problem for doing it so.