Manipulation at its finest

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Manipulation at its finest

Postby MJGrae » Mon May 19, 2014 12:25 pm

In case you were wondering, here is the wallet that is keeping Bitstamp's hotwallet empty of USD. All it does is withdraw massive amounts of USD to Ripple, and then send it back effectively draining the balance.

More often than not, this depresses the value of XRP significantly while the wallet is empty.

rseqpD8mD2spMQ5qGceWxqcFXzjWiBNPPG

Just an interesting observation about market mechanics for you today.
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Re: Manipulation at its finest

Postby sayright » Mon May 19, 2014 12:42 pm

that user needs to have validated account at bitstamp to be able to send the usd to ripple, I think bitstamp should ban that account to prevent that from happening
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Re: Manipulation at its finest

Postby sayright » Mon May 19, 2014 12:44 pm

MJGrae wrote:Just an interesting observation about market mechanics for you today.


nice observation, but that more than a market mechanics, it looks like bitstamp hotwallet sabotage
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Re: Manipulation at its finest

Postby donch » Mon May 19, 2014 12:50 pm

Traceable to:
unclescrooge rhnngBntKLEvT1f4WkE8uLYWeTF6WdM1rY

https://ripple.com/tools/info/#ED464FB8 ... 03F1A2D38B

who's somewhat of an early starter from ledger 310137:

https://ripple.com/tools/info/#409471CF ... 300ECF4E58

and also in charge of Bitfinex, which has direct access to the Bitstamp order book as a "meta" exchange. Intriguing....
Last edited by donch on Mon May 19, 2014 12:57 pm, edited 1 time in total.
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Re: Manipulation at its finest

Postby MJGrae » Mon May 19, 2014 12:54 pm

sayright wrote:that user needs to have validated account at bitstamp to be able to send the usd to ripple, I think bitstamp should ban that account to prevent that from happening


No, I dont think so. That wasnt the point of this thread. My point is: do your homework. Know what's going on in the market before you accept intentionally inflated/deflated prices.
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Re: Manipulation at its finest

Postby MJGrae » Mon May 19, 2014 12:57 pm

donch wrote:Traceable to:
unclescrooge rhnngBntKLEvT1f4WkE8uLYWeTF6WdM1rY

https://ripple.com/tools/info/#ED464FB8 ... 03F1A2D38B

who's somewhat of an early starter from ledger 310137:

https://ripple.com/tools/info/#409471CF ... 300ECF4E58


Exactly the kind of sleuthing I'd like to get more people into.

The beauty of open ledgers like this is that we can actually see what is going on in the market and who is doing what, which is something traders could never know for sure before.

Trading on the ripple network allows us to have a wealth of knowledge that was never available before. Use it to your advantage.
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Re: Manipulation at its finest

Postby alexdupre » Mon May 19, 2014 1:47 pm

Evidently Bitstamp hasn't lost one of its deposits, yet. But it's just a matter of time...
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Re: Manipulation at its finest

Postby RafOlP » Mon May 19, 2014 1:53 pm

Nice catch MjGrae!
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Re: Manipulation at its finest

Postby bibbit » Mon May 19, 2014 6:51 pm

sayright wrote:that user needs to have validated account at bitstamp to be able to send the usd to ripple, I think bitstamp should ban that account to prevent that from happening


Adding a "Naughty Whale" fee surcharge for actions that are clearly a manipulation of this mechanism will stop it quickly enough. :) You always get the behavior you incentivise.
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Re: Manipulation at its finest

Postby GJSey » Mon May 19, 2014 8:37 pm

not necessarily naughty.. good way to move money fast between Bitstamp accounts ..
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