Coinfloor, one of the leading crypto exchanges in Britain has announced that it will soon start using software applications provided by Trading Technologies, an American company. The software will be used to surveil the markets in a bid to detect fraud and manipulation attempts. The software will make use of machine learning technology when monitoring all the trading activity occurring in the exchange.
Use Of Machine Learning Technology
The system by the American firm is to be deployed in all the exchanges being operated and run by Coinfloor. This includes Coinfloor Exchange Gibraltar, Coinfloor Exchange UK, as well as in its cryptocurrency futures exchange Coinfloor EX. Coinfloor is the latest group to announce that it will be putting in place a market surveillance system.
It follows in the footsteps of companies such as Coinbase and American Exchanges. Rick Lane, who is the chief executive officer of Trading Technologies indicated that the adoption of this software by Coinfloor will help bring in more participants from the financial sectors.
In his statement, Rick Lane went on to say that they anticipate that the use of the market surveillance system by Coinfloor together with TT’s connection to their marketplace will make it possible for professional and institutional traders to gain an interest in its markets.
The system being supplied by TT is expected to start operating by August 2018. In addition, Coinfloor is expected to become the first cryptocurrency to implement the Score system. TT will also be providing Coinfloor EX with global access from the company trading platforms starting from quarter three of this year.
Manipulation Suspicions On The Increase In The Crypto Markets
Crypto markets are still being dogged by issues pertaining to market manipulation. This is more so when it comes to USDT (stablecoin Tether). A report that was recently released by Bloomberg indicated that there were suspicious trading activities on the Kraken Exchange. The exchange, however, came out to deny the report stating that there was no manipulation taking place on its platform.
In June this year, two researchers working with the American University of Texas released a report indicating that they had proof that USDT had at some point been used to manipulate bitcoin prices.
To make matters more complicated, there are two additional reports that have drawn comparable conclusions. One of the reports was published by an anonymous author. The report established that there existed a relationship between bitcoin prices and the issuance of new USDT coins.
The second report was released by Tony Arcieri, a cybersecurity expert in January this year, and it also came to the same conclusion, although the author did not provide any evidence to back his claims.
Cryptocurrencies Have Started Moving Towards Self-Regulation
A trend has started to emerge where crypto exchanges have started to move towards self-regulation. This is a stance that was also reflected by Coinfloor’s CEO Obi Nwosu. Obi stated that implementing the new technological solutions from TT was a demonstration by his company on its commitments towards being transparent and to creating an environment that was pre-emptively compliant.