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Cyber Fraud Expert Simon Smith warns of rogue Cryptocurrency trading robots
BREAKING NEWS - A new discovery has been made via an investigation into Cryptocurrency trading practices. Simon Smith discovered an algorithm that is designed to make new traders fail, resulting in significant misrepresentations.
By: eVestigator Simon Smith
"Believe half of what you see", said Mr. Smith. He goes on to explain that the entire cryptocurrency trading platform is a semi-sophisticated system of algorithms and robots working on both sides for the beneficiary of those robots.
"It is impossible for the 'newbie' to make a cent! In fact, that is how they all lose money", Mr. Smith said in a Blockchain conference today in Melbourne. He has uncovered a combination of a typical 'Ponzi' scheme combined with 'Shill Bidding'. Mr. Smith, as well as being a Certified Fraud Examiner, Certified Hacking Forensic Investigator, Cyber Crime and Cyber Security Expert, he is also a board member of the IIB Council, which is EC Council's new Blockchain board.
He holds about 12 Blockchain, Ethereum, Solidity, Bitcoin, Smart Contract and HyperLedger Qualifications and has been a computer programmer and reverse engineer for over 21 years commercially. "I know how to beat the robots", Mr. Smith said. "As part of my investigation I figured out their algorithm and it was not pretty.
For example, the offering price might be $25.06. The actual purchase prices people are willing to sell for are always computer driven and may be at about $25.56. The split second a person places a bid at the advertised price of $25.06 there are four events that occur", said Mr. Smith. He has outlined them as below.
1. The advertised offering prices go up about 10% and expect you to chase them.
2. The actual purchase prices all jump up about 20%.
3. The computer always calculates that gap between the two and is working for both sides.
4. You cannot compete as a buyer or a seller as it places a $30k bid and buy on both sides.
5. The only sales that get through are when people just spring a bid on the high sale price.
Mr. Smith has designed software to counter and confuse this algorithm by reverse engineering its logic and is preparing to release a consumer version of software that helps everyday people not become the victim of fraud in trading cryptocurrency.
"It's a mess, and the trading platforms allow it. They make billions on transaction fees. This is an amazing discovery. I am open to the media requesting a visualisation of what I have discovered", stated Mr. Smith.
eVestigator Media, Simon Smith
Cybersecurity and Cybercrime