Cryptocurrency substitution Bitfinex deployed its proprietary marketplace surveillance tool to combat market abuse on the platform called "Shimmer."

Co-ordinate to an annunciation shared with Cointelegraph on March 24, Shimmer is meant to identify and investigate possible manipulative behaviours and suspicious trading on Bitfinex. The exchange expects that the integration of the tool with its matching engine will improve market integrity and visibility.

Bitfinex's team volition be warned nigh suspicious trading

Now, Bitfinex's team volition be alerted via email when potential improper trading activity is detected on any of the exchange'due south trading pairs, including futures and margin-enable trades. The firm hopes Shimmer volition aid prevent activities such as wash trading and layering. The substitution's chief technology officer Paolo Ardoino commented:

"Comprehensive market and trade surveillance capabilities are integral to operating a leading cryptocurrency exchange. [...] Bitfinex has chosen to develop its own country-of-the-art surveillance system. This will assist to clinch that potentially manipulative practices are rooted out and suspicious behaviour detected."

Ardoino explained to Cointelegraph that "Shimmer processes the unabridged order and trade data and tries to find patterns for layering, spoofing and other manipulative practices." He besides said that, in guild to avoid false positives due to high-frequency bot-based trading the system "can be taught to accept unlike thresholds depending on the activity of the user."

Ardoino revealed that Bitfinex plans to make Shimmer open source in the futurity, but there'due south no deadline for this yet. An commutation spokesperson too explained to Cointelegraph that when dissonant trading is detected the consequences will see the firm take dissimilar measures based on the severity of the activeness.

Market place manipulation in cryptocurrency trading

Existence less regulated, the cryptocurrency market has long been accused of being much more vulnerable to manipulation than its traditional counterparts. For instance, in Nov 2022 research suggested that a single whale was responsible for Bitcoin'southward celebrated toll surge in 2022. Still, other sources later contradicted the theory.