Bitcoin Price Manipulation by Bots Confirmed

According to "Price Manipulation in the Bitcoin Ecosystem" research, Mt Gox bots Willy and Markus "pumped" Bitcoin price from $150 to $1000 in few months
16 January 2018   1414

Researchers from the Tel Aviv University and the American University of Tulsa confirmed information that at the infamous Mt Gox stock exchange fraud was conducted with the help of bots Willy and Markus.

The study "Price Manipulation in the Bitcoin Ecosystem" was published in the Journal of Monetary Economics. The authors of the work analyzed the impact on the bitcoin rate of suspicious activity on the Mt.Gox exchange, as a result of which the value of the crypto currency in just two months increased from $ 150 to $ 1000. Then, fraudulent transactions were made with 600,000 for a total of $ 188 million.

Bots Willy and Markus conducted externally real deals, but they didn't "own" bitcoins. Nevertheless, they influenced the price of the crypto currency, stimulating the growth of trading volume on other exchanges.

Even in case of detection and cancellation of fraudulent transactions, the average trading volume on the exchanges increased. Therefore, in days of increased activity of bots, the rate of bitcoin to the dollar increased by an average of 4%. At all other times he, on the contrary, showed a slight decrease.

Since the MtGox exchange charged commission from each transaction, the increase in the volume of trading was also profitable for it. In addition, the researchers indirectly link the Willy bot with the attempts of the owner of MtGox Mark Karpeles to hide the losses from the theft of 650,000 bitcoins.

Willy was first seen in September 2013 and operated until the end of January 2014, buying about 100 BTC per hour at intervals of 5-10 minutes. A month earlier, the bitcoin price reached its first loud maximum. 

VeriBlock to Report on Mainnet Launch

VeriBlock believes their technology allows networks of other cryptocurrencies to use the bitcoin blockchain to counter the “51% attacks”
21 March 2019   79

Using the bitcoin blockchain to ensure the safety of altcoins, the VeriBlock project announced the launch of the main network. This is reported in a press release.

According to the developers, the VeriBlock technology allows networks of other cryptocurrencies to use the bitcoin blockchain to counter the “51% attacks”. The project is confident that this approach not only ensures the security of less popular networks, but also allows their developers to focus on innovation and functionality.

According to analysts of The Block, 25–45% of bitcoin transactions fall on VeriBlock. The VeriBlock network uses a consensus algorithm called Proof-of-Proof (PoP). The project seeks to ensure the safety of other blockchains by loading a snapshot of the altcoin registry into the BTC blockchain, using the OP_RETURN function and other methods to embed network state data.

The project’s website states that PoP allows altcoin networks to use the most protected Bitcoin blockchain with its Proof-of-Work algorithm.