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05:25 PM

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Subject Cryptocurrency Option Derivatives -- market rigging of cryptocurrencies. Thanks CFTC

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[quote:Anonymous Coward 75194407:MV8zNTcxNjYwXzYzODAwMTAwXzVEMkQxNDM=]
[quote:Anonymous Coward 75192914:MV8zNTcxNjYwXzYzNzkzMTE2XzFCNTkzQTdE]
How can they rig the markets, if the cryptos are decentralized?

Am I missing something here, I don't get the point...
coinbase and bittrex are OK.
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The CFTC has the habit of looking the other way when there is corruption. Such as naked short selling in the futures market.

Naked short selling, should it occur, is where the price is gamed.  
A miscreant broker/dealer can naked short the cryptos with greater leverage.   Just look at the way gold and silver are traded in the futures market. Totally rigged, with no true price discovery. Huge market distortion of price.  The equivalent of an entire years supply of gold can be sold in a matter of minutes. But it's not gold that was really sold, just the paper derivative of it.  These naked short transactions are done by crooked broker/dealers, who may be working for a larger entity, including sovereign level entities, and they never settle or close out the position, leading to a condition called, fail to delver.   Essentially, it is counter fitting. Very toxic the the market.

If the options future market were honestly regulated, it would be an ok thing to have. But it's not honestly regulated.

Look at the cryptos space,  it would not take much to influence the price direction. Do you think options trading will magnify the price swings or lead to price stability?  The answer is, only if there is honest regulation will  there be price stability.

Like gold and silver, I think there is the chance you can  add cryptocurrency to the list of manipulated markets should cryptos be allowed to have option futures trading.

Disclosure: I have a computer and an internet connection, and of course, an opinion.
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Original Message Tell me if I am wrong about this GLP.

Based on this article, the criminal CFTC will allow trading digital currency derivatives.

More
[link to www.coindesk.com]

You knew it would be a matter of time for the CFTC to step up and rig the crytocurrency market. All in the name of price stability. You can't have cryptocurrency outshine the US dollar you foolish slaves.

So now we will see big whales do what they want in the cryptocurrency market, moving the price around as they see fit. They have the means to do so, to place huge bets on derivative-cryptos, that is, beyond the amount of cryptos that are actually is mined.

Will there most likely be a Federal Reserve Desk on the proverbial trading floor with the big levers to move prices lower at options expiration time? The same rigging strategy as the gold and silver markets?

Some details from the article.
"As a result of that capital, Chou believes LedgerX is on the cusp of creating a cryptocurrency options market that could increase the number of institutional investors able to invest in the asset class and help stabilize the price of the currency by enabling a more reliable hedges."

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