Sorry? They most certainly can be arbitrary numbers. [1]
You know 99% of all LTC trading on Coinbase was one account trading back and forth with itself a couple years ago. Spoof trading involves putting up a big order, then yanking it at the last second before it gets executed.
If you're the house, you can do literally anything if only the fox is watching the henhouse. As the peer response states, if you're the house, you know which orders are yours so there's zero risk of them accidentally getting filled. You put fake orders on the books, you fake close them, and report them as a real transaction in the log. The liquidity can just be pretend.
.. Again that's all good in theory but in practice you can verify by trading. My orders do get filled faster on Binance, I can take advantage of the better spread and liquidity etc. The majority of orders aren't just disappearing randomly or anything.
It's especially obvious when trading higher amounts or trading a smaller liquidity token in the first place. Maybe I can't verify the actual numbers but I can very much verify there's more liquidity etc. than when I do the same transactions on a smaller exchange (and I'm on ~5 exchanges).
No you cannot verify by trading lol, any more than you can verify the payout ratio of a slot machine at a rigged casino. They can synthesize opening and closing the orders, matching them internally, based off a feed from a legitimate exchange. Since they control everything they can easily ensure they don't accidentally get matched to an external order. This gives the illusion of liquidity.
>any more than you can verify the payout ratio of a slot machine at a rigged casino.
If I use a slot machine a million times and I get higher payouts than at the casino next door, why should I consider it rigged?
This is just nonsense. I am getting all the benefits of high liquidity and volume, my orders actually execute and I take advantage of the smaller spread. You can posit whatever you want, but the more likely explanation is that the volume is indeed higher.
They have not provided you with any reason to believe them. They won't even tell you where they're located lol.
This was a common growth hack for exchanges. When a new exchange launched they wanted to feign liquidity to establish a sense of credibility. They literally copied feeds from peer exchanges until they bootstrapped.
After all, why would anyone trade at an illiquid exchange? How do you get the first people onboard? You pretend you already have a lot of people onboard. More volume = more credibility.
The question you should ask yourself is if nobody is looking, why would they ever stop?
[note] by "growth hack" I mean literally a felony in any other context, but in the crypto space shrug who cares I guess. After all in which jurisdiction would you even sue them lol. Thanks to the "beauty of the blockchain" they won't even tell you where they're based.
You know 99% of all LTC trading on Coinbase was one account trading back and forth with itself a couple years ago. Spoof trading involves putting up a big order, then yanking it at the last second before it gets executed.
If you're the house, you can do literally anything if only the fox is watching the henhouse. As the peer response states, if you're the house, you know which orders are yours so there's zero risk of them accidentally getting filled. You put fake orders on the books, you fake close them, and report them as a real transaction in the log. The liquidity can just be pretend.
[1] https://www.complianceweek.com/regulatory-enforcement/cftc-f...