Competition Among Crypto Traders Becomes More Aggressive By DailyCoin

Competition Among Crypto Traders Becomes More Aggressive

  • In a collapsed and competitive crypto market with declining profits, some traders are turning against each other.
  • Attacks on other traders’ trading positions about to be liquidated have become a daily mission for many players.
  • This dangerous arbitrage strategy is precisely one of the causes of the crisis of several DeFi companies such as Celsius.

Competition in the cryptocurrency market is becoming more aggressive as profits fall due to collapsing prices and trading in crypto assets becomes more difficult.

Traders are turning against each other and scrutinizing the blockchain for key information to track the movements of their drivers, especially those who have highly leveraged positions, a contributor to the decentralized crypto exchange Suchi, who goes by the pseudonym Omakase, revealed to Bloomberg.

After studying the other traders, these sharks attack their positions and push them into liquidation in order to obtain bonuses that are often offered to their clients by decentralized finance (DeFi) platforms, which offer free cryptocurrency trading and lending services intermediaries.

Arbitrage Is Crashing Exchanges

Behind the fall of TerraUSD could be shark traders. These players profited from price arbitrage between the Curve platform, a decentralized exchange blamed for the stablecoin’s collapse, and centralized exchanges, according to blockchain analytics firm Nansen.

Arbitrage is a financial strategy applied to cryptocurrency trading that consists of taking advantage of the price difference between different markets on the same token to obtain benefits, almost without risk.

US cryptocurrency lender Celsius Network’s troubles began right when traders struck out using price arbitrage for rewards. As the price of the tETH token fell, it also affected Celsius due to the fact that the company has large positions of this crypto pegged to Ether.

“As stETH goes down, arbitragers buy stETH and…

Read more at www.investing.com

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