Cryptanalyst Willy Woo cited spoofing as one of the reasons for today's drop in BTC. Market manipulated through false orders on Binance
What is spoofing?
Spoofing is a way to manipulate financial markets by misleading its participants by creating false orders to buy / sell an asset.
Spoofing appeared long before the launch of Bitcoin and is a prohibited practice in all financial markets. But in cryptocurrencies, the regulation rules are still extremely weak.
The principle of spoofing is to place orders that create the appearance of a large seller / buyer in the market. The rest of the traders are guided by a large player, for example, seeing the appearance of large volumes for sale, they themselves begin to sell. At the same time, there is no whale on the market at this moment, and when the price reaches its orders, they will simply be canceled.
