Also known as bots, such programs automatically execute trade orders at a speed that is faster than any human is able to.
The WSJ argued that the lack of proper regulation in virtual coins markets is the main reason why bots are allowed to hurt the markets’ reputation and individual investors.
“The bot’s strategy was similar to ‘spoofing,’ a practice in which traders enter fake orders only to cancel them. The tactic, aimed at tricking other investors to buy or sell an asset by falsely signaling there is more supply or demand, was outlawed in U.S. stock and futures markets in 2010,” said WSJ.
Ethereum slid 5.5% to $219.96 in the previous 24 hours.
In other news, an unnamed Canadian bank formed a partnership with Ontario-based exchange Coinsquare. The bank would help the platform streamline deposits and withdrawals and allow the company to expand globally, according to reports.
The news came Coinsquare announced plans to expand into Europe by the end of the year and Japan in 2019.
“This announcement is one of many examples of how institutional third-party partners put their faith in our approach to the cryptocurrency business,” said Coinsquare CEO Cole Diamond. “We’re thrilled to start a relationship with a major Canadian bank and we’re excited for what it means for our users.”/investing.com