HFT

TemporaryDrag7956

With the Alpenglow update that will go live at the start of 2026, Solana will very quickly surpass the $1,500 level. With this update, transaction finality drops from 12 seconds to 150 milliseconds — which basically means the concept of “speed” in the blockchain world disappears and becomes truly “instant.” A chain that can technically compete head-to-head with infrastructures like Visa or Nasdaq simply cannot be ignored by institutional portfolios with this level of capacity — it’s mathematically impossible. The real story shows itself in practical use-cases enabled by this “faster-than-a-blink” speed. For major financial institutions engaged in high-frequency trading (HFT), and for the Web3 gaming sector that has long struggled due to latency issues, a 150ms delay was the biggest barrier. With this new architecture moving voting processes off-chain to reduce costs while dramatically increasing speed, this isn’t just a message to the crypto world — it’s a direct challenge to traditional tech giants. When you add this technological backbone — which stands as a true alternative to traditional finance — on top of the already-approved ETFs and the massive capital backing them, it becomes very difficult for the price to stay suppressed at these levels. Solana has long outgrown the “Ethereum killer” narrative and is now building a global highway that could replace existing payment and transaction systems. Once the train leaves the station, you don’t want to be the one saying “I wish I’d paid attention,” so it’s worth understanding where the technology is heading.

EpicQuest4Alpha

After 6 months of solo dev, I finally finished a Stealth Execution Engine that handles L2 Spoofing/Icebergs. Here’s the architecture. I’ve spent the last half-year grinding on a custom execution layer for Binance Futures because I was tired of HFT bots front-running my entries. I wanted to share the logic for the StealthRouter I built to see what you guys think. Standard API orders leave a massive footprint. If you're moving size, the book moves before you're even 20% filled How I solved it (Architecture): L2 stability and persistence analysis StealthRouter Logic: It fragments parent orders into randomized slices with variable intervals Hybrid Urgency: It starts 100% passive to harvest maker rebates, but I built a Fill Probability Model that flips the order to 'Aggressive' (crossing the spread) if it detects the price is moving away from the target. Mark-Price Protection: For exits, it bypasses the local contract price to avoid getting stopped out by 'scam wicks' on the exchange I’m currently modularizing the coordinator so it can wrap around different alpha signals. I'm considering licensing the infrastructure to a few small funds or serious traders who need to move size without the 'execution tax.' Happy to answer questions on the threading logic or how I'm handling the Binance WebSocket rate limits.

dataCollector42069

Because CME clearing is already good enough and crypto defi can't support the HFT structure on CME

biba8163

Reminder **RWA Meme** has been around since 2018. **You will NEVER:** - trade AAPL,NVDA,MSFT,etc shares in your Ethereum address by connecting to MetaMask and going over to Uniswap - be able to go to Robinhood and withdraw AAPL,NVDA,MSFT,etc shares to you Ethereum/Solana address - trade NYSE regulated stocks outside the financial system of brokerages, DTCCs, etc and natively on Ethereum/Solana public blockchains **1. Identity, KYC, and Regulation Make Public Stock Trading Non-Viable** Public blockchains are fundamentally incompatible with how regulated stock markets operate. All participants in U.S. equity markets (NYSE, Nasdaq, etc.) **must be known, verified entities**. This includes: - Identity verification (KYC) - Anti-money laundering (AML) controls - Restrictions on who can buy specific securities - Tracking cost basis and holding periods - Mandatory tax reporting U.S. brokerages are **legally required to report all capital gains and losses to the IRS** using forms like **1099-B**, including: - Purchase price (cost basis) - Sale price - Holding period (short- vs long-term gains) - Wash sale adjustments A **fully public, permissionless blockchain cannot enforce these rules** because: - Wallets are pseudonymous - Anyone can transact without identity checks - There is no native way to restrict who can buy regulated securities - There is no built-in mechanism to enforce tax reporting or compliance To comply, you would have to introduce: - Permissioned blockchains - Private Layer-2 or Layer-3 networks - Whitelisting of approved wallets - Centralized identity enforcement At that point, you’ve **recreated a traditional brokerage and clearing system—just with more complexity and worse performance**. The original purpose of a public blockchain is lost entirely. **2. High-Frequency Trading (HFT) Performance Alone Disqualifies Blockchains.** Roughly **75% of total market trading volume today is algorithmic and dominated by high-frequency trading (HFT)**. These firms: - Compete at **nanosecond speeds** - Use **hollow-core fiber**, microwave relays, and colocation - Optimize every layer of hardware and networking for latency A **nanosecond is one billionth of a second**. Even the fastest centralized systems struggle at this scale—and **blockchains are orders of magnitude slower**. Even without blockchains, traditional trading systems already require: - Extreme horizontal scaling (Kubernetes, microservices) - In-memory databases - Edge locations - Direct exchange colocation - Private fiber networks And despite all this, **brokerages and exchanges still experience outages and lag during volatility**. Using a blockchain as the backbone of stock trading would be like replacing Formula 1 engines with horse-drawn carts.

OKCPCREPAIR

Yeah, just saw that huge totally HFT driven collapse. Probably Saylor. LMAO he wont' be bragging now

grayjacanda

Yeah I'd be curious about that too. Need a baseline for whatever HFT/churn/daytrading is normally going on. I expect a significant majority of the volume is normally very short term holdings ... but maybe 99.1% at six months or less is actually unusual?

biba8163

**At some point dummies are going to realize that stocks cannot trade on public blockchains and that they were led astray with hype men** **1. Identity, KYC, and Regulation Make Public Stock Trading Non-Viable** Public blockchains are fundamentally incompatible with how regulated stock markets operate. All participants in U.S. equity markets (NYSE, Nasdaq, etc.) **must be known, verified entities**. This includes: - Identity verification (KYC) - Anti-money laundering (AML) controls - Restrictions on who can buy specific securities - Tracking cost basis and holding periods - Mandatory tax reporting U.S. brokerages are **legally required to report all capital gains and losses to the IRS** using forms like **1099-B**, including: - Purchase price (cost basis) - Sale price - Holding period (short- vs long-term gains) - Wash sale adjustments A **fully public, permissionless blockchain cannot enforce these rules** because: - Wallets are pseudonymous - Anyone can transact without identity checks - There is no native way to restrict who can buy regulated securities - There is no built-in mechanism to enforce tax reporting or compliance To comply, you would have to introduce: - Permissioned blockchains - Private Layer-2 or Layer-3 networks - Whitelisting of approved wallets - Centralized identity enforcement At that point, you’ve **recreated a traditional brokerage and clearing system—just with more complexity and worse performance**. The original purpose of a public blockchain is lost entirely. **2. High-Frequency Trading (HFT) Performance Alone Disqualifies Blockchains.** Roughly **75% of total market trading volume today is algorithmic and dominated by high-frequency trading (HFT)**. These firms: - Compete at **nanosecond speeds** - Use **hollow-core fiber**, microwave relays, and colocation - Optimize every layer of hardware and networking for latency A **nanosecond is one billionth of a second**. Even the fastest centralized systems struggle at this scale—and **blockchains are orders of magnitude slower**. Even without blockchains, traditional trading systems already require: - Extreme horizontal scaling (Kubernetes, microservices) - In-memory databases - Edge locations - Direct exchange colocation - Private fiber networks And despite all this, **brokerages and exchanges still experience outages and lag during volatility**. Using a blockchain as the backbone of stock trading would be like replacing Formula 1 engines with horse-drawn carts.

biba8163

> RWA, the whole stock market will be tokenized, ETH will be the plumbing of Wall Street Reminder That Stocks Cannot Trade on Public Blockchains: **1. Identity, KYC, and Regulation Make Public Stock Trading Non-Viable** Public blockchains are fundamentally incompatible with how regulated stock markets operate. All participants in U.S. equity markets (NYSE, Nasdaq, etc.) **must be known, verified entities**. This includes: - Identity verification (KYC) - Anti-money laundering (AML) controls - Restrictions on who can buy specific securities - Tracking cost basis and holding periods - Mandatory tax reporting U.S. brokerages are **legally required to report all capital gains and losses to the IRS** using forms like **1099-B**, including: - Purchase price (cost basis) - Sale price - Holding period (short- vs long-term gains) - Wash sale adjustments A **fully public, permissionless blockchain cannot enforce these rules** because: - Wallets are pseudonymous - Anyone can transact without identity checks - There is no native way to restrict who can buy regulated securities - There is no built-in mechanism to enforce tax reporting or compliance To comply, you would have to introduce: - Permissioned blockchains - Private Layer-2 or Layer-3 networks - Whitelisting of approved wallets - Centralized identity enforcement At that point, you’ve **recreated a traditional brokerage and clearing system—just with more complexity and worse performance**. The original purpose of a public blockchain is lost entirely. **2. High-Frequency Trading (HFT) Performance Alone Disqualifies Blockchains.** Roughly **75% of total market trading volume today is algorithmic and dominated by high-frequency trading (HFT)**. These firms: - Compete at **nanosecond speeds** - Use **hollow-core fiber**, microwave relays, and colocation - Optimize every layer of hardware and networking for latency A **nanosecond is one billionth of a second**. Even the fastest centralized systems struggle at this scale—and **blockchains are orders of magnitude slower**. Even without blockchains, traditional trading systems already require: - Extreme horizontal scaling (Kubernetes, microservices) - In-memory databases - Edge locations - Direct exchange colocation - Private fiber networks And despite all this, **brokerages and exchanges still experience outages and lag during volatility**. Using a blockchain as the backbone of stock trading would be like replacing Formula 1 engines with horse-drawn carts.

biba8163

> I claim it won’t go to $20 trillion, per my research Common Sense shows ETH won't reach $20 Trillion marketcap. > Ethereum Network Can Grow To A $20 Trillion Valuation ETH reached a 1/2 Trillion marketcap in May 2021, 4 1/2 years ago. **ETH has been unable to hold support over 1/2 Trillion for ~5 years but they will reach a $20 Trillion markecap in 10 years?** > Stablecoin Activity will propel ETH to $20 Trillion **Stablecoins marketcap has grown by 200% since 2021. ETH is down -40% since then.** Stablecoins growth and volume have zero impact on ETH price and marketcap | |Nov. 2021 | Nov. 2025 |:-----------|:------------:|:------------:|:------------:| | Stablecoins | $0.11 Trillion | $0.32 Trillion > Invisible Value Behind The Trillion-Dollar Thesis includes transaction FEES **ETH revenue from daily transaction fees have dropped -90% since 2021** with L2s and network upgrades. | Date | Fees | |:-----------:|:------------:| | 12/12/2021 | ~$4.18 Million | | 12/12/2025 | ~$330K | | Δ | -90% | > RWA, the whole stock market will be tokenized, ETH will be the plumbing of Wall Street Stocks Cannot Trade on Public Blockchains: **1. Identity, KYC, and Regulation Make Public Stock Trading Non-Viable** Public blockchains are fundamentally incompatible with how regulated stock markets operate. All participants in U.S. equity markets (NYSE, Nasdaq, etc.) **must be known, verified entities**. This includes: - Identity verification (KYC) - Anti-money laundering (AML) controls - Restrictions on who can buy specific securities - Tracking cost basis and holding periods - Mandatory tax reporting U.S. brokerages are **legally required to report all capital gains and losses to the IRS** using forms like **1099-B**, including: - Purchase price (cost basis) - Sale price - Holding period (short- vs long-term gains) - Wash sale adjustments A **fully public, permissionless blockchain cannot enforce these rules** because: - Wallets are pseudonymous - Anyone can transact without identity checks - There is no native way to restrict who can buy regulated securities - There is no built-in mechanism to enforce tax reporting or compliance To comply, you would have to introduce: - Permissioned blockchains - Private Layer-2 or Layer-3 networks - Whitelisting of approved wallets - Centralized identity enforcement At that point, you’ve **recreated a traditional brokerage and clearing system—just with more complexity and worse performance**. The original purpose of a public blockchain is lost entirely. **2. High-Frequency Trading (HFT) Performance Alone Disqualifies Blockchains.** Roughly **75% of total market trading volume today is algorithmic and dominated by high-frequency trading (HFT)**. These firms: - Compete at **nanosecond speeds** - Use **hollow-core fiber**, microwave relays, and colocation - Optimize every layer of hardware and networking for latency A **nanosecond is one billionth of a second**. Even the fastest centralized systems struggle at this scale—and **blockchains are orders of magnitude slower**. Even without blockchains, traditional trading systems already require: - Extreme horizontal scaling (Kubernetes, microservices) - In-memory databases - Edge locations - Direct exchange colocation - Private fiber networks And despite all this, **brokerages and exchanges still experience outages and lag during volatility**. Using a blockchain as the backbone of stock trading would be like replacing Formula 1 engines with horse-drawn carts.

biba8163

The Scammy thing is hype men convicing morons that the entire stock market is going to get tokenized and move to the blockchain. Why Stocks Cannot Trade on Public Blockchains: **1. Identity, KYC, and Regulation Make Public Stock Trading Non-Viable** Public blockchains are fundamentally incompatible with how regulated stock markets operate. All participants in U.S. equity markets (NYSE, Nasdaq, etc.) **must be known, verified entities**. This includes: - Identity verification (KYC) - Anti-money laundering (AML) controls - Restrictions on who can buy specific securities - Tracking cost basis and holding periods - Mandatory tax reporting U.S. brokerages are **legally required to report all capital gains and losses to the IRS** using forms like **1099-B**, including: - Purchase price (cost basis) - Sale price - Holding period (short- vs long-term gains) - Wash sale adjustments A **fully public, permissionless blockchain cannot enforce these rules** because: - Wallets are pseudonymous - Anyone can transact without identity checks - There is no native way to restrict who can buy regulated securities - There is no built-in mechanism to enforce tax reporting or compliance To comply, you would have to introduce: - Permissioned blockchains - Private Layer-2 or Layer-3 networks - Whitelisting of approved wallets - Centralized identity enforcement At that point, you’ve **recreated a traditional brokerage and clearing system—just with more complexity and worse performance**. The original purpose of a public blockchain is lost entirely. **2. High-Frequency Trading (HFT) Performance Alone Disqualifies Blockchains.** Roughly **75% of total market trading volume today is algorithmic and dominated by high-frequency trading (HFT)**. These firms: - Compete at **nanosecond speeds** - Use **hollow-core fiber**, microwave relays, and colocation - Optimize every layer of hardware and networking for latency A **nanosecond is one billionth of a second**. Even the fastest centralized systems struggle at this scale—and **blockchains are orders of magnitude slower**. Even without blockchains, traditional trading systems already require: - Extreme horizontal scaling (Kubernetes, microservices) - In-memory databases - Edge locations - Direct exchange colocation - Private fiber networks And despite all this, **brokerages and exchanges still experience outages and lag during volatility**. Using a blockchain as the backbone of stock trading would be like: > Replacing Formula 1 engines with horse-drawn carts.

MaximumStudent1839

Sidechain blah blah blah modularity is a dead thing. ETH is pivoting away. Cosmos went full PoA for “institution chains”. Celestia went full HFT CEX build. Polkadot is pivoting to JAM and a unified hub. Your narrative of modular scaling is too late…

bimbobandit2016

Next cycle Bitcoin will become an asset where only sharp traders win. Buy and hold will yield worse results than the stock market. I bet you next cycle Bitcoin will only move between around 65k and 150-200k. Then the cycle after that it will become a HFT market, just like traditional forex. We are basically speed running the path of forex

dataCollector42069

Hows the pay like for Market Risk at Tier 1 banks? I do something similar, though on the MM/HFT side of things.

Purple_Errand

Because it touched down 101k and over $20b liquidation that got spread across multiple HFT and individuals. so, you'll see large liquidation daily instead of getting it monopolize by multiple. it will stay like this for as long as at least 75% of $20b is return to hft and hedgers to be able to draw parameters again. its not speculation but thats how open book works. you are seeing it like it's closely to A Book, but you see everything

Purple_Errand

well, because $20b has now spread across multiple traders so surely the $90k-125k is going to be full of liquid. its going to be a normal thing to see it daily for as long as at least 75% of what $20b is returned to HFT and hedgers

Purple_Errand

too bad, wallets are not properly kyc'd so majority of these are not a person but just HFT alot of HFT uses multiple wallets. we've seen it.

alt-co

Exactly, that’s why most whales get lost. You’re right that the traditional way is to hire multiple service providers: accountants, forensics firms, OTC desks, and lawyers to pre-brief a bank. But in practice, very few people can coordinate all that cleanly. That’s where alt comes in (the company I work for). We’re a Swiss regulated financial intermediary that specializes in crypto-origin wealth, and we bundle the entire solution into a single service: * KYC/AML report: We use tools like Chainalysis and Scorechain, but we don’t just run an automated scan. We reconcile the blockchain analysis with the client’s actual story and profile. Whether it’s early adoption, HFT trading, ICO allocations, or DeFi activity and produce a structured report that banks actually understand. We always make sure the bank accepts the report before trading to avoid freezes. * Private banking relationships: We’re partnered with established Swiss and Monaco private banks & asset managers. We don’t just introduce you; we open the account and put our regulatory license and reputation behind the file. * OTC execution: We give you access to our partner OTC desks. You remain anonymous, with no spreads, and the all-inclusive fee (KYC + OTC trade + private bank account opening) is 1% flat on the amount cashed out. No hidden commissions. So instead of paying separately for forensic reports, legal memos, OTC services and bank onboarding fees, our clients get the whole process handled under one roof, end-to-end, for that single fee.

alt-co

Exactly friction is one thing, but for the cases I mentioned (HFT traders, early adopters with dead exchanges, DeFi activity, ICO allocations), it’s more than just paperwork. The only solution I’ve seen work in practice is when a regulated financial intermediary that specializes in crypto KYC/AML steps in. They take on the “risk” of validating the proof of funds, build a full audit trail, and produce a report that actually makes sense to a bank’s compliance team. That way the bank isn’t left trying to interpret 50k micro-trades or an old Mt.Gox withdrawal they’re reviewing a structured file that matches the individual/company’s profile with the way the wealth was generated. Without that bridge, most whales just keep running into brick walls.

alt-co

You’re right that **tax filings** solve part of the picture but they’re not what banks are looking at. Banks don’t care that you’ve declared income to your tax authority; they care about **source of funds** in a way that’s much deeper and more forensic. Here’s where things break down in practice: * **HFT traders:** Your tax return might summarize profit, but compliance wants to see trade-by-trade provenance and a summary of the main wealth generating trades. Thousands of micro-trades across exchanges that no longer exist? That doesn’t map neatly into their system. * **Early buyers:** Tax filings don’t magically generate receipts from Mt.Gox, BTC-e, or other dead exchanges. When those records don’t exist, bank compliance sees a gap, not a filing. * **DeFi flows:** Show your tax office “$2M from yield farming” and they’ll take your word with an accountant’s stamp. Show that to a banker, and they’ll freeze the wire until someone in compliance figures out what an LP token is. * **ICO allocations:** Even if you paid tax on them, they still get flagged as “high risk” origins. The stigma hasn’t gone away. The Visa card thing works for day-to-day spending, sure but that’s a few thousand a month. Try wiring **$10M into a bank**, and you’ll see. It’s not that wealth is fake. It’s that bridging it into the traditional system at scale is *much harder* than most people think and I’ve seen whales get stuck there.

biba8163

RWA in 2024/2025 People are falling for the meme that everything is going to be tokenized and the whole world of assets from stocks, bonds, real estate, etc will be all traded on blockchain platforms. 1 1/2 years ago, ETH investors started celebrating Blackrock BUIDL tokenizing on their platform. In almost 2 years, there have been 8K transactions and maybe $1K in fees generated. https://etherscan.io/token/0x7712c34205737192402172409a8F7ccef8aA2AEc This is intended for institutions to self-custody assets. It's does not mean everything can be tokenized and traded on blockchains. An absolute meme pilot that crypto has hyped into everything being tokenized soon. If you've worked in banks and brokerages you know that 75% of all trades all algorithmic, High-Frequency (HFT) trades. The last few years, there have been improvements in things such as hollow-core fibers to try to improve systems by nanoseconds for trading systems to gain advantages. A nanosecond is a billionth of a second. There is no blockchain that can process transactions at those speeds. Hell, even to scale centralized servers handling that kind of load and latency, you have to employ scaling strategies like containerization using Kubernetes, in-memory databases, edge locations to deliver data to minimize latency, etc. What's worse is scammers like Sergey Nazarov have run with this idea that everything will be tokenized on-chain and he's building magical oracles that will have Data Containers containing a Unified Golden Record will know within seconds everything that's happening Off-Chain in the Real World and tokenized assets will reflect updates to debt levels, tax liens, property ownership changes, etc all within seconds. Again, if you've worked at a bank or a financial institutions you know the difficulty of even simple things like QDROs, inheritance, etc. And this scammer's Hocus Pocus Magical Oracles are going to solve all that! > *"what is the status of the real estate? Are there any tax liens? Is there any debt? Change of ownership? As the status of the real world asset changes, you should have a real world update to the on-chain token....You go from not a 1-month window of verifying an asset but to a few seconds window....The way to do that is to make a connection to what's going on in the real world and what's On-Chain by creating an Unified Golden Record"* - Sergey Nazarov https://np.reddit.com/r/CryptoCurrency/comments/1jlb8bb/chainlink_is_now_working_with_the_federal/mk2t3ac/

gruninuim

No, automation will change how the market works, not kill it. Trading has been automated for decades (algos, HFT, robo advisors). As long as companies need capital and investors want returns, markets will exist. The players and speed just keep evolving.

j4_jjjj

But not since HFT

BitcoinBaller420

You can look at literally any asset that has been growing over many years and observe it for yourself, including bitcoin. Volatility drops as market cap increases because it takes larger amounts of buying power to move markets as they become more widely traded and thus more liquid. I have a degree in math from MIT and decades of experience in finance. I am currently the team lead for an HFT desk.  Instead of arguing, you should be reflecting on why you might be wrong. Or don’t, stay ignorant. In today’s society, studying makes you dumb apparently, believe whatever you like. 

dataCollector42069

HFT firms trading off correlation values of ES and BTC. Firms such as Citadel, Jump, DRW are probably being paid by these Exchanges to provide liquidity

Lucky-Ad-709

HFT i think

isabelegribeiro

Bitlayer building DEXs lending platforms even HFT on Bitcoin—never thought I’d see the day This is exactly the kind of innovation BTC needs to stay on top

FreaksFromFrisco

So many bad takes here lmao. This is a HFT team; they obviously make money from maker rebates. But the real pnl comes from micro alpha in ms bursts when they slam taker. Just insane someone will write something about them without knowing whats actually going on. Hint: the hyperliquid api is free

DorkyDorkington

Lmao, these current swings are in sync with the regular markets - so much for the regulation that is being "enforced" by the self regulating entities. The trad markets you are likely referring to are possibly even worse off, deeply removed from actual fundamentals and manipulated to the very core. One could even argue that they are built on purpose to be a rigged casino. Market Makers with their exemptions, HFT bots, PFOF, FTDs, synthetic positions through various derivatives... it's a shit show beyond imagination. Even on the occasion when some entity gets fined for breaking the rules the fines are miniscule in contrast to the profit made and as such they are just a cost of running the business. Especially so since the guilty party does not need to admit any wrong doing or send anybody to go to jail, just pay as you go.

btcpsycho

HFT

Tricky_Troll

> Yes, lets look at Blackrock's BUIDL Fund. > > ETH is down -50% since mETH Heads started shilling the BlackRock BUIDL shilling started 1 year ago and mETH Heads started smoking hopium talking about the number of transactions that were about to flow through... I find it comical that you're once again only relying on past performance to justify your opinions. Man will this bite you in the ass one day. I feel bad for you at this point. The lack of critical thinking is palpable. Nice cherry picking data again! Holy fuck you're disingenuous. You're grasping at straws at this point. Try $245 million in the first week and that was a year ago. Now Blackrock is looking at up to approving $150 **BILLION** on Ethereum. https://np.reddit.com/r/CryptoCurrency/comments/1bpqffo/blackrocks_buidl_ethereum_fund_draws_245_million/ https://www.reddit.com/r/CryptoCurrency/comments/1kb9ekn/the_worlds_largest_asset_manager_blackrock_files/ >75% of all trades all algorithmic, High-Frequency (HFT) trades. The last few years, there have been improvements in things such as hollow-core fibers to try to improve systems by nanoseconds for trading systems to gain advantages. Do you know what a nanosecond is? A nanosecond is a billionth of a second. What blockchain can process transactions at that speed? It literally does not matter who is behind the trades. In the future, the vast majority of transactions will be done by AI agents and bots. This is by design. After all, all of these transactions pay fees! >Do you know what a nanosecond is? A nanosecond is a billionth of a second. What blockchain can process transactions at that speed? Trying to be condescending eh? Don't play a game you can't win. Have you heard of MEV? Blockchain transactions have long been ordered based on who pays the highest fees to block builders. Not who gets their orders in first. You clearly don't even understand the basics of blockchain if you think that getting your orders in first matters. >Aptos, Arbitrum, Avalanche, Optimism and Polygon Arbitrum and Optimism are both Ethereum and Polygon's roadmap ends as Polygon becoming a ZK rollup on Ethereum. This is basic knowledge. How can you not know this? Mind-boggling. As for Avalanche and Aptos, well their usage is minimal and TVL insignificant. >You CANNOT point to ONE SINGLE large corporate purchase of ETH by corporations, institutions or billionaire investors. Hell, the ETF has barely brought in any inflows. There is NO big money interest in investing in ETH. Are you a bot? Are you a hallucinating LLM? When did I do that? Ethereum adoption has a comprehensive list of major institutions and companies building on Ethereum. >You are misleading noobs and gullibles Gullibles is not a noun. Not that you know what a noun is I'm sure.

biba8163

> Just look at Blackrock's BUIDL fund Yes, lets look at Blackrock's BUIDL Fund. ETH is down -50% since mETH Heads started shilling the BlackRock BUIDL shilling started 1 year ago and mETH Heads started smoking hopium talking about the number of transactions that were about to flow through... > *"BlackRock unveils crypto fund first with $5 million minimum"* > And it’s right on ETH. **Can you imagine the number of transactions about to go down?** https://np.reddit.com/r/CryptoCurrency/comments/1bkm1u1/blackrock_unveils_crypto_fund_first_with_5/kvzup2u/ There have been ~4,800 total transactions over 1 year. At the current rate, the transaction fees collected would something like $800. So all that Blackrock brought was $800 in fees for 1 year. https://etherscan.io/token/0x7712c34205737192402172409a8F7ccef8aA2AEc When you smoke mETH you might not realize that this is intended for institutions to self-custody assets. It's NOT for trading. 75% of all trades all algorithmic, High-Frequency (HFT) trades. The last few years, there have been improvements in things such as hollow-core fibers to try to improve systems by nanoseconds for trading systems to gain advantages. Do you know what a nanosecond is? A nanosecond is a billionth of a second. What blockchain can process transactions at that speed? Assets that are intended to be traded need to be available to be traded at these speeds, *there isn't any blockchain that has anywhere near this type of capacity.* The idea that all world assets are about to be tokenzied and massively traded on blockchains is hopium. Ethereum is just a rail for tokenizing for institutional self-custody. Blackrock are not investing or buying ETH. And since a year ago, Blackrock has put BUIDL on Aptos, Arbitrum, Avalanche, Optimism and Polygon. And Blackrock is not building anything on any of these blockchains. It's just tokenizing assets for institutional self-custody and these blockchains are just rails NOT investments. > EthereumAdoption You cannot point to ONE SINGLE large corporate purchase of ETH by corporations, institutions or billionaire investors. You are misleading noobs and gullibles with ETH meme investing thesis in the past like the **Ethereum Alliance of businesses** that would lead the whole world to build on Ethereum. Or Ethereum hype about **gaming giants** coming to Ethereum. Very irressponsible shilling leading people off a cliff to losses. > Gaming Giant Ubisoft announces their first game on Ethereum https://np.reddit.com/r/CryptoCurrency/comments/14okrbd/ubisoft_announced_theyre_releasing_their_first/ > Grand Theft Auto' dev Take-Two's first crypto game launching on Ethereum https://np.reddit.com/r/CryptoCurrency/comments/1712q12/grand_theft_auto_devs_first_crypto_game_doing_a/

fractalfocuser

Very valid analysis. You've got me trying to guestimate volume on TTTXX right now. My quick thoughts are that a money market fund like this typically doesn't need HFT because it's not trading on volatility as much. Truth be told though I know fuck all about trading T-Bills. The other thing is that any use is good use. Tokenizing assets is a good thing for Eth whether or not it brings in huge gas fees. I'm not a price speculator but while I agree with you it's not paradigm changing it sure feels like this is good news for Eth. I've read some of your posts and you do seem to have a lot of insight but also seem like a BTC maxi. I've got two questions if you'd indulge me, Do you think BTC is the only crypto worth investing in right now? Also what do you think BTC's value proposition is? Genuinely curious because you seem like a smart guy and it's really rare to get insight in this sub anymore, as evidenced by the other replies to your comment. I hold BTC but don't consider myself a maxi, it feels like BTC maximalism is condemning any use case of blockchain beyond a single SOV asset, do you feel that way?

biba8163

ETH is down -50% since the BlackRock BUIDL shilling started 1 year ago and people were talking about the number of transactions about to go down... > *"BlackRock unveils crypto fund first with $5 million minimum"* > And it’s right on ETH. **Can you imagine the number of transactions about to go down?** https://np.reddit.com/r/CryptoCurrency/comments/1bkm1u1/blackrock_unveils_crypto_fund_first_with_5/kvzup2u/ There have been 4,737 total transactions over 1 year. At the current rate, the transaction fees collected would something like $800. So all that Blackrock brought was $800 in fees for 1 year. https://etherscan.io/token/0x7712c34205737192402172409a8F7ccef8aA2AEc This is intended for institutions to self-custody assets. It's NOT trading. 75% of all trades all algorithmic, High-Frequency (HFT) trades. The last few years, there have been improvements in things such as hollow-core fibers to try to improve systems by nanoseconds for trading systems to gain advantages. Do you know what a nanosecond is? A nanosecond is a billionth of a second. What blockchain can process transactions at that speed? Assets that are intended to be traded need to be available to be traded at these speeds, *there isn't any blockchain that has anywhere near this type of capacity.* The idea that all world assets are about to be tokenzied and massively traded on blockchains is hopium. > Why do you think Blackrock avoids any and all mention of ethereum, despite being it's current most worked-on asset? Because Ethereum is just a rail for tokenizing for institutional self-custody. They are not endorsing ETH as an investment. And since a year ago, Blackrock has put BUIDL on Aptos, Arbitrum, Avalanche, Optimism and Polygon. And Blackrock is not building anything on any of these blockchains. It's just tokenizing assets for institutional self-custody and these blockchains are just rails not investments.

rechtim

HFT bots do it all day

ethereumfrenzy

Definitely. Decentralization wise, Eth is the best hands down (both protocol, client, teams, etc). About on chain activity, it is also hands down the chains with the most activity. If you look at TVL, fees paid by users, volumes on Dex, it is still by a big margin the biggest. Then there are the L2s that aalso have significant usage. ERC20 transfers have been steadily been increasing on Eth, and most stablecoins are by far mostly on Eth. Solana appears to have many transactions, but with very low fees, you can just spam the network very easily. Look at HFT, they do maany more transactions than Warren Buffet, does not mean they are a bigger asset manager. Here js a small graph kn TVL comparison: https://www.theblock.co/data/on-chain-metrics/comparison-bitcoin-ethereum-solana/ethereum-vs-solana-tvl Dev experience is also mich better on Eth than Solana.

PrimaxAUS

There has been so much fiat printed that so many things correlate now, especially with HFT firms creating price actions when things move. I've been thinking there is less value than normal in short term analysis these days

TheBigLR901

It's not. As long as you have access to a HFT super computer and a team of math PhD's in your basement. Anybody can be profitable. Easy.

shreddisketti

How don’t market makes sense? Companies have balance sheets you are free and open to read, they have management you are free and open to learn about, and they have products you are able to deduce what impact they will have on society and whether or not they will be successful in the long term. In a short term trading scenario due to hedge funds, HFT trading and other manipulation tactics, yes markets are confusing but by and large long term big picture they are fairly simple to make money from. In regards to accuracy and transparency. America was founded on the ideals of individual freedom and liberty, and freedom from an overbearing government. Having a system that is able to track and scrutinize every single thing you do is the complete opposite of what this country was founded on and is no way shape or form “freedom”.

NodeTraverser

BTC just hit 95k in intra-nanosecond trading. Only we Ultra-HFT traders can take advantage of spikes like that.

Successful-Bird8775

CLOB execution might seem fair on the surface, but in reality, it’s a playground for market makers and HFT firms. They control order flow, front-run trades, and get better execution while retail traders get stuck with bad fills and slippage. Most CEXs operate this way because it benefits their in-house MMs, ensuring they profit regardless of market conditions. The system is designed so retail traders provide liquidity but rarely get the same advantages. Some exchanges are finally addressing this issue with alternatives like hybrid order books, off-chain execution, improved liquidity routing, or no-CLOB models. But the fight for fairer trading conditions is far from over.

m1ndfulpenguin

Triggers typically execute at market which is devastating if orders are pulled and if trigger limit is specified can produce scenarios where they won't fill. If the order books are thin, which during a cascade they most certainly are. they will use the tight spread you suggest to ensure you get liquidated via instaneous structuring of HFT counter trades so that your limit price is effectively skipped before it even hits the book. Don't play games with leverage and when deployed never cut it close. Even 2x is too much imo.

shadowdax

You're very confused about all of this. I think half the confusion is that Sol calls them "failed". I think Ethereum calls them "reverted". You can read about a swap not meeting slippage on Ethereum here for example: [https://np.reddit.com/r/ethereum/comments/n9c3wa/200\_in\_gas\_fees\_transaction\_failed\_all\_lost/](https://np.reddit.com/r/ethereum/comments/n9c3wa/200_in_gas_fees_transaction_failed_all_lost/) The faster and cheaper a market is, the more "failures" to execute a trade you will see. Unlike the above example where some poor guy lost $200 in gas fees, it costs next to nothing to attempt to execute a swap on Solana. So bots and/or people (but mostly bots) will just try to execute swaps that would be profitable but aren't likely to succeed. Because you may as well try if it only costs the base fee right? It's like a tenth of a cent to try on Solana. Note that this is the same (even more so!) on real stock markets and exchanges. 99%+ of transactions on the NASDAQ probably "fail". We can't tell exactly because it isn't a public blockchain and they aren't recorded in the market data. If the market as a whole ticks up in price, and there is one Apple share still sitting on the books for sale at a cheap price, then every bank/trading desk/hedge fund/etc will attempt to buy it. Maybe 200 fill-or-kill market orders come flooding in to the exchange in less than a millisecond to buy that Apple share. Only one is successful, the rest all "fail". For a stock exchange or futures exchange, you don't even pay to send an order. It is free, so HFT bots spam millions of them. These failures are not "errors", they're just how high speed trading works.

Memeweevil

"...trying to drive the value of companies towards where WE think they should be..." Kenneth Cordele Griffin explaining how Citadel basically assumes the right, as a "market maker", to manipulate what ought to be a free and fair market, using HFT algos, so that he wins. Piece of shit's gonna get stepped-on before long. https://www.youtube.com/watch?v=Ho-522VwPIY

Misher7

Lmfao. There’s your institutionalized nail in the coffin for crypto. It’s now traded by Griffen’s market make HFT grift.

GiverTakerMaker

Tldr: it is easier said than done. 1. There is a spread between buy /sell offers on the exchange and larger orders will be competing to HFT bots for liquidity. 2. The exchange is charging a fee on your orders. Use limit orders they often have lower fees. 3. Most likely this is a KYC exchange so you will be hit for CGT. 4. Lastly, sooner or later the market will aggressively and there is a good chance you will be on the wrong side of the trade. A good strategy is to use multiple exchanges and to simultaneously place buy/sell orders. Indeed many exchanges even offer bot trading products to do automated grid trading. To execute this exact strategy. All those things eat into the profit. But yes, you can do it. It is called spot trading. Do the math first to figure out what size move in price is necessary for you to make a profit worth the effort.

Sufficient-Corgi-309

Index, FLR, HFT, and FOX

Successful-Bird8775

Yeah right, retail gets the short end of the stick, but the problem isn’t just retail panic-selling. It's how CLOB (Centralized Limit Order Book ) models are set up to exploit retail traders at every step. CLOBs work by matching buyers and sellers on a public order book, but who do you think has the best access to that data? market makers and high-frequency trading (HFT) firms. they see retail orders coming in, front-run them, and pocket the difference. Ever notice how your limit orders get skipped, or you always end up buying the top and selling the bottom? that’s because CLOB models allow big players to manipulate the spread, use hidden orders, and execute trades milliseconds ahead of you. it's not a fair game when the other side has better tools, faster execution, and preferential order flow. If you really want to level the playing field, look at no-CLOB execution models, or platforms that don’t let market makers feast on retail. The system is rigged, but that doesn’t mean you have to keep playing by their rules

Successful-Bird8775

if you're gearing up to trade, solid move getting your setup right first. you'll wanna cover these basics: CEX for on/off ramps – just for moving fiat in/out, but be wary of ones using CLOB models (they cater to whales & HFT bots). DEX for real trading – keeps you in control, no middlemen freezing funds. Cold wallet – for long-term holds, because "not your keys, not your crypto." Hot wallet – quick access for active trading, but keep minimal funds there. also, check out platforms exploring No-CLOB execution models. they avoid the typical market-maker manipulation and give retail traders a fairer shot.

Brickscratcher

I already explained this in my first response. If you want to take the typical flip a coin and go all in, no that will not be profitable. But if you wait for circumstances where mean reverting behavior is likely to occur, such as during price exploration or in the center of a range, then you either buy or sell based on the coin flip at that point. When you buy/sell, you don't put your whole position in at that point. You create a grid based on recent price behavior and model out the expected range of oscillation. This is where the TA comes into place. Once done, you can create a grid of buy or sell orders that extends the position to remain liquid for the entire duration of one expected price swing. Then you either profit or your position gets liquidated, but if done correctly your profits should outweigh your losses. This is an oversimplified explanation of one of the HFT algorithms behind one of the world's best performing funds.

BorderImmediate4060

Crypto trading platforms (exchanges and DeFi protocols) also use dirty tricks to manipulate traders and maximize their own profits. Here are some of the most common ones: 1. Hidden Fees & Spread Manipulation • Exchanges advertise low fees, but they manipulate the bid-ask spread (the difference between buy and sell prices). • You end up paying more than expected, even on “zero-fee” platforms. • Example: The exchange claims 0.1% fees, but the actual price execution slips 0.5% against you. 2. Stop-Loss Hunting • Exchanges see your stop-loss orders and intentionally trigger them by manipulating the price. • They do this by dumping a large amount of liquidity into the order book or spiking wicks (liquidation candles). • After stopping you out, the price quickly rebounds. 3. Fake Volume & Wash Trading • Many exchanges inflate trading volumes using bots. • This makes the platform appear more active and liquid than it really is. • Example: An altcoin suddenly shows millions in daily volume but has no real buyers or sellers. 4. Front Running Your Orders • Exchanges can see your pending trades before they execute. • They use bots to buy before you (if you’re placing a large order) or sell before you (if you’re selling). • This causes price slippage against you. • Common in decentralized exchanges (DEXs) where miners and validators exploit transactions. 5. Withdrawal & Deposit Freezes • During big price crashes or rallies, exchanges disable withdrawals to prevent people from cashing out. • They claim “technical issues” or “maintenance”, but it conveniently happens at the worst possible time. • Example: Bitcoin pumps 20%, but you can’t withdraw to sell elsewhere. 6. Flash Crashes (Liquidation Traps) • Platforms create sudden price drops on leveraged trading pairs to liquidate traders. • These moves only happen on their exchange (not across the market). • Example: On a major exchange, ETH drops 30% in a few minutes, while on other platforms, it barely moves. 7. Fake “Slippage” on Market Orders • If you use market orders, exchanges fill your order at worse prices than expected. • The platform blames “low liquidity” or “market conditions”, but they take extra profit from you. 8. Selective KYC Enforcement • They let you deposit and trade freely without KYC (identity verification). • But when you try to withdraw large amounts, they suddenly demand KYC and freeze your funds. • Goal: Force you to keep trading (and paying fees) instead of withdrawing profits. 9. Delisting Coins After Retail Buys In • Exchanges list small altcoins, hype them up, then quietly delist them after retail traders buy in. • This traps your funds, forcing you to sell at a loss or lose access to the coin. 10. API Manipulation & Data Leaks • Some platforms sell order book data to high-frequency trading (HFT) firms. • These firms exploit retail traders by front-running orders or market-making with unfair advantages. • Example: Your limit order never fills, but the price hits it on the chart. 11. Listing Scam Coins for Quick Profits • Exchanges charge huge listing fees to add scammy altcoins. • Retail traders get rug pulled, but the exchange already made money from listing fees. 12. Fake “Outages” During Volatility • When the market moves too fast, exchanges suddenly go offline. • You can’t buy, sell, or adjust your positions. • Example: Binance and Coinbase always seem to crash when BTC makes a big move. 13. No Real Crypto (Paper Trading) • Some platforms don’t actually hold crypto, they just simulate trades on their books. • If everyone withdrew at once, they wouldn’t have enough crypto to cover balances. How to Protect Yourself • Use limit orders instead of market orders to avoid slippage. • Spread funds across multiple exchanges to avoid withdrawal freezes. • Avoid high leverage, since exchanges use it against traders. • Use decentralized exchanges (DEXs) when possible. • Check order book history for suspicious wicks or manipulated moves. Most exchanges aren’t your friends—they profit from traders losing money. Always stay one step ahead!

BorderImmediate4060

Whales in the altcoin market use several dirty tricks to manipulate prices and make profits at the expense of smaller traders. Here are some of the most common ones: 1. Pump and Dump • Whales buy up a large supply of a low-liquidity altcoin, creating artificial demand. • They spread hype (fake news, influencer shills, social media FOMO). • Retail investors jump in, pushing the price up. • Whales dump their holdings at the peak, crashing the price and leaving retail investors with heavy losses. 2. Spoofing (Fake Buy/Sell Walls) • Whales place large buy or sell orders to create the illusion of demand or supply. • Retail traders react to the fake demand/supply. • Before the orders are executed, the whales cancel them. • This tricks traders into making emotional decisions. 3. Wash Trading • Whales trade with themselves using multiple wallets or bots. • This artificially inflates trading volume, making the coin look more active. • Retail traders FOMO in, thinking the coin is gaining popularity. 4. Stop Hunt (Liquidation Hunts) • Whales identify where retail traders have placed stop-losses or liquidation levels (usually near support levels). • They dump the price to trigger these stop-losses, forcing people to sell. • Then, they buy back cheap before the price recovers. 5. Bait and Switch (Fake Breakouts) • Whales push the price above a key resistance level to trigger breakout traders. • Once enough people jump in, they sell aggressively, crashing the price. • This traps retail traders in losing positions. 6. Front Running • Whales use insider information or high-frequency trading (HFT) to buy before big news (e.g., exchange listings). • Retail traders chase after the move, but the whale sells into the pump before they can react. 7. Flash Crashes • Whales suddenly sell huge amounts of an altcoin, causing a rapid price crash. • Retail traders panic and sell at a loss. • The whale then buys back the coins at a much lower price. 8. Slippage Manipulation • Whales target illiquid coins and make large market orders to create high slippage. • This causes huge price swings that shake out retail traders and allows whales to profit. 9. Fake News and FUD Spreading • Whales use social media, Telegram groups, or fake news to create FUD (Fear, Uncertainty, Doubt) about a project. • The goal is to make retail investors panic sell, so whales can buy in at a lower price. 10. Pre-Mine and Insider Allocations • Whales who are part of a project’s team or early investors get coins at ultra-low prices before public sales. • When retail investors start buying, these insiders dump their tokens for massive profits. How to Protect Yourself • Don’t FOMO into hype-driven coins. • Watch for fake buy/sell walls and manipulation patterns. • Avoid low-liquidity coins where whales have too much control. • Set strategic stop-losses and avoid obvious liquidation zones. • Be skeptical of influencer shills—they often work with whales. Whale games are brutal in altcoins, especially in low-cap projects.!

Quant-Tools

Wow the people here are being toxic towards you... Okay so there's a LOT going on here, but most basic answer is that AI (or more specifically, machine learning) is actually a really bad way of finding strategies to trade financial assets. Because there are dozens of inputs, billions of adjustable parameters etc you inevitably just end up creating curve fit strategies that don't work once they are deployed. The reason is that there just isn't enough financial data to train the models on. Now this might be different at the tick and order book level (where some HFT firms are able to find edge) but if you are trying to trade on 5M/60M/1440M candles etc there just isn't enough data to train a ML model properly and you end up with curve fit garbage. Unfortunately this does not stop unscrupulous charlatans and marketers from selling you a false dream of easy money using AI as a buzzword.

iam_pink

- That statement is false, the "traders" giving it are shit traders - The market is ruled by human psychology, which makes it extremely difficult to have an automated decision making. We still need human brains to analyse and understand human behavior. - There is profitable automated trading systems, but you don't have access to them. They're used by giants paying for server space right next to the exchange's servers for HFT

LouisOfTokyo

It doesn’t make any sense. Successful trading strategies rely on the rest of the market not knowing about them. If others know about them, they become priced in and cease to work. Anyone selling trading strategies is a scammer, 100% of the time. There is absolutely nothing simple enough to teach the average person that consistently beats the market, because if there was, HFT algorithms would be written to do it and it would become a component of the price. Successful traders don’t share their strategies. The way to make money in crypto is to buy in the bear market when things are cheap and nobody’s paying attention to it and sell now when everyone and their dog is piling in.

DorkyDorkington

If you spend a little time wondering this you figure out there are thousands of different stocks and other intruments, millions of investors, many markets and ALL OF THOSE are interlinked by the entities investing in those markets. And on top of that there are HFT bots trying to balance and guess other traders moves. Crypto space is not some insulated market especially after the ETFs were intriduced but not only because of those. If you want you can look for any possible correlation yourself, data is freely available but please understand that not every move is about the same investor, asset pair etc.

breatheb4thevoid

Mk 11 HFT.

Frequent-Draft-2477

salary from High frequency trading (HFT) firm

pandation

Well, unless you're doing a crypto maneuver like HFT/stock trader that does loss harvest to minimize short term gains, its not particularly beneficial. Youre only taxed if the CEX reported your gains. Would you self report if there is no tying information if you transact via DEXes/smart contracts? Also I thought SEC already categorized cryptoes as security, just buy and hold as a long term investment and or use it as a collateral for loans, just like other millionaires would if you have so much in cryptoes.

lebastss

I know but ETFs are predictable and consistent so it stabilizes the market to allow for HFT on the asset that prevents runups. It's not the WTF itself, but the activity it enables. I would argue BTC does not have a true finite supply since it can be broken up in sold in increments to infinite amounts. You can buy BTC at any amount. If you were restricted to buy a whole BTC then I would agree with behaving as a finite supply asset. This doesn't mean your BTC will ever be diluted, but it does prevent the force of supply constraints you get with truly finite supply assets in high demand. BTC traded scarcity for accessibility. I'm not referring to whales. I'm referring to market makers by definition. I have a personal relationship with a true market maker. They are actively working against a drastic BTC run because they want money to stay in the stock market. BTC isn't big enough for market makers. It's easy to manipulate and control BTC. But it's not domestic. If BTC gets too big and too much money moves into it. You then are competing with foreign entities and governments for control and there is a known point of value where it can cause rippling effects through our overvalued stock market that could lead to collapse.

ulptthrowaway2016

No, there are also probably a bunch of HFT bots trained to do some action when he actually says the magic words

jetylee

I’m a high frequency trader that totaled over $53m in volume in 2023. I also have btc holdings to this day as far back as 2012. Would you like me to teach you about HFT?

GenesisBlockZero

HFT, algos yes, but also forced sellers, leverage traders being liquidated.

jetylee

Ah ok! Euronext is massive out there, yes. HFT is the definition of what one would loosely call “fast trading” you might also hear “scalping” Some use HFT for just chasing movement and volatility plays big role. Euronext is safe.

Loose_Screw_

HFT = milliseconds, not days.

Disastrous_Way_4074

Is crypto the new HFT strat? Up a few days, down a few days, ride it both ways?

No-dev-no-gain

Subsidiary of jump trading , one of the biggest HFT shop

bruh4152

HFT actually just trade against you to arbitrage the small price difference, it doesn't move the market this much

Ark-gypsy

this is HFT, well known way to balance books.

call-the-wizards

This is literally how HFT works. Or at least one component of it. The trades are basically 'probe' trades. Information about which and how quickly the orders get filled gets fed back into the trading model. It's used to test new algorithms or figure out the order book structure.

StaysAwakeAllWeek

Do you really think you can do TA better than an algorithm built by 100 PhD mathematicians running on a supercomputer? When you trade based on a pattern the effect of those trades is to erase that pattern from the market, and that's exactly what HFT firms exist to do. Your blind arrogance is showing, please don't let it take your money.

StaysAwakeAllWeek

TA hasn't worked in decades. The HFT algo firms destroyed any trace of a predictable pattern that once existed in markets. Please stop with the TA astrology bullcrap, it will just give you false confidence and you'll lose more money https://www.investopedia.com/terms/t/texas-sharpshooter-fallacy.asp

sita_wong

Thanks for contributing with your questions! 1. **MPC vs. Multisig:** * **MPC:** In Multi-Party Computation (MPC), private key shares are managed through a distributed protocol where each party holds a part of the key. The actual private key is never reconstructed, significantly enhancing security against insider threats and external attacks. * **Multisig Wallets:** Private key shares are held by different parties or devices, and signatures are aggregated to complete a transaction. This method requires careful coordination and secure storage of each share but can be more vulnerable to coordination issues and potential insider threats. 2. **Chain Abstraction and Fees:** * Based on data from centralized exchanges, high-frequency trading (HFT) costs typically range from 2-4 basis points. For high-frequency volume trading, the gas fee cost is a fixed fee, which is comparable or even lower than what CEXs charge. * Additionally, charging a fixed fee per transaction can help prevent wash trading and fake volumes, ensuring a more transparent and fair trading environment. 3. **Centralization Concerns with MPC:** * **JayX Account:** Similar to how centralized exchanges operate, each user has their own on-chain address. The exchange uses a script to monitor individual accounts, moving assets to a centralized pool upon deposit and withdrawing from this pool as needed. Each user's JayX wallet is generated using MPC, ensuring that only your wallet can access and authorize transactions, providing a high level of security and control. * **JayX Vault:** The Vault functions like a centralized pool but with enhanced security features. The balance of each account is maintained on our blockchain ledger, and the pool is created at the genesis block using MPC technology. Funds in the Vault can only be moved after consensus among all nodes, adding an extra layer of security. This setup supports high-frequency trading with lower costs and faster settlements by bypassing native chain confirmation times. * **Decentralization Measures:** To avoid a 51% attack on the Vault, when node-staked TVL (Total Value Locked) reaches 80% of the Vault TVL, the Vault will initiate rebalancing, where inactive funds are returned to users' MPC wallets. This ensures that assets remains decentralized and secure.

biba8163

> LINK will be used for every transaction that rolls through the DTCC...the DTCC settles quadrillions, and dwarfs the size of the current crypto market cap An estimated 75% of all trades all algorithmic, High-Frequency (HFT) trades. The last few years, there have been improvements in things such as hollow-core fibers to try to improve systems by nanoseconds for trading systems to gain advantages. Do you know what a nanosecond is? A nanosecond is a billionth of a second. What blockchain can process transactions at that speed? We might see a future where it becomes popular to hold tokenized stocks on blockchains. But the majority of trades will never occur there. Blockchains are too inefficient/slow for that. And that is what Chainlink is about, real world data on chain. Anyway, even in 2020 to the end of 2021, there were over 90 stocks tokenized for trading on BNB/Binance chain and FTX/Solana until the regulators stopped Binance and FTX exit scammed. These included APPL, TSLA, GOOGL, MSFT but there was almost zero interest in these tokenized stocks. And if blockchain tokenized stocks does capture a small percentage of the market, the trading fees charged by the NYSE itself is minuscule, like a fraction of a cent. I am not talking about the commissions but the clearing fees charged by NYSE itself. The idea that DTCC settles quadrillions and LINK will be used in every transaction is ludicrous delusion just like Ripple bagholders who bought into the hype that "XRP will free $3 Trillion in liquidity in Nostro/Vostro accounts." Think logically and rationally, this entire space is a scam at worst and speculative hype at best. It will easily make you a bagholder if you don't think critically.

DorkyDorkington

Front running in the bread and butter in US stock markets. They just call it market making, PFOF, HFT or whatever they find amusing.

VOX_IRRATIONALIS

These "dumps" are dumps only in smaller scales. They are buy opportunities for those who invest/trade in larger scales, which are bullish. Looking at the chart in multiple scales is an elementary skill you need in investing and trading. These dumps in smaller scales are due to a combination of less impactful fundamental factors and short-term traders (swing, day, and intraday traders, and HFT).

lordpuddingcup

Similar to HFT on the stock market almost lol

SkylarkV

Now do algorithmic HFT in stocks.

kanonnn

There is an enormous amount of money spent on fucking with our emotions, HFT, dark-pools, buybacks, etc….

0xSmartMoney

we were running a HFT prop shop then my quant said “there is this shit hole exchange, called UniSwap. I’ll test some arb there…” booom 💥there goes your 1st sandwich attack and all sorts of MEV… the story goes happily afterwards

paythepiper663

That's a flaw in the market structure and HFT market making.

Simcoe17

I used to be a full time HFT on the stock exchange. You lose more than you win and you can’t beat the bots who live right next to the data wires grabbing free money at 1/1,000/sec faster than anyone else. I agree with you, something about this year was different for me as well. Got a cold wallet finally, automated my buys thru Swan Bitcoin into that wallet, and not panicking. Only buying. Set my buy ins to daily. Not monthly.

gamma55

Not really true. Most of tradfi markets run on commercial software suites, with some bleeding edge HFT excluded. The software is not your competitive edge, it’s your strategies.

LoveSexDraems

That and HFT possibly

Dojiyo

Comparing halving reduction to daily volume is nonsense. Most of the volume is market makers, arbitrage, bots, HFT, short term trading.... which over a long period does not affect price. The equivalent of halving is someone buying 450 Bitcoins a day, (every single day) for 4 years to HODL forever. 164k btc a year. 657k btc in total.

streetfightermz

HFT firms can also probe certain price points by moving the market by a combination of aggressive selling and placing large fake sell orders that later get cancelled. This often leads to other algorithms reacting by cancelling their bids, moving the price lower and triggering stops that lead the price even lower. At this point the trade can be closed profitably. This typically happens with a few seconds so the actual volume required isn’t as high as you’d think. Some statistical analysis can also pinpoint places where stops are more likely to be set than others (eg round numbers). https://www.quora.com/How-does-a-market-making-algorithm-see-my-stops

Real-Technician831

In fact I do. I don’t work with HFT, but I do work with AI models a lot. It’s really simple, big models have latency, and thus unsuitable for HFT.

Real-Technician831

Nah, an HFT trading company is using way less electricity than BTC mining. No matter whether you count it by HFT total vs BTC total. Or by the size of transactions on BTC trade vs HFT trade. So proportional tax for HFT would be pennies. Sure, why not, but an HFT company wouldn’t even notice.

Real-Technician831

Moving goalposts are we? You mentioned using HFT trading, and that doesn’t consume that much energy. Training is of course a bigger energy hog, but even in there the data amounts are nothing compared to high volume event processing systems. On my day job we process billions of events per day, stock trading event volumes are peanuts.

Real-Technician831

Umm, for high frequency trading? LOL no, for that you need speed, which distributed computing is an anathema to. Spark jobs, or Azkaban clusters are definitely not HFT. HFT systems are monolithic boxes with well tuned algorithms and sitting on really fast network connections. You are mistaking everything else a bank or trading company is doing, and the comment above was about HFT.

GuyWithNoEffingClue

You're very wrong. High Frequency Trading is data-intensive. You wouldn't be able to train a HFT model on a simple pc. Not even a high-end one. The amount of data and computing power to clean it and format it for the model alone is beyond what a 5k/month server could provide you. We're not even talking about the kind of tech giant hedge-funds are developing and keeping up-to-date just to be nanoseconds ahead of competition.

neitze

We great knowledge comes great responsibility or something. Be careful out there - the landscape has essentially turned into a ton of projects utilizing fake engagement to boost 'credibility.' Even last cycle we had 'influencers' like K. Kardashian advertising rug pulls on their social accounts... I started diving into some coins recently that were getting listed on MXC (non-kyc exchange out of Singapore that has basic/advanced trading functionality US exchanges largely lost after the initial crackdowns), and even legitimate looking (on the surface) projects were littered with single word replies of "great,' "awesome," "nice project," "innovative," etc. On their Twitter posts, random shill reddit threads, etc. It's not uncommon to have bots create fake engagement in things like Telegram / Discord. It's not uncommon for "trusted" accounts to get highjacked or paid off to shill some kind of rug. Liquidity is a major concern for anyone trading or amassing big bags. It's essentially a game of musical chairs in 99.9% of cases, hoping you get your capital out before the music stops. Whales will jump ship to another chain, another coin, or switch to stables at the drop of a hat, leaving small-fry retailers fighting like crabs in a bucket to exit the token with a portion of their initial. The biggest winner in trading shitcoins are HFT (high frequency trading) bots. Typically on any given day you can see the highest ROI traders, especially on layer 2s, are HFT accounts. Play around on this [link](https://birdeye.so/leaderboard/7D?chain=allChain) Keep in mind volume can be faked and should not be the determining factor when gauging the quality of fresh shit. Duplicate coins are often listed to fleece noobs (this is where the contract address is handy). Don't click links. Don't engage with random trash sent to your wallet. Don't fall for the random nfts sent to your hotwallet that say you need to claim some airdrop. No, some random person didn't send you a Bored Ape and is now asking you to connect your wallet to some dody website. And No, the person DMing you on social with a legit looking support account is only there to steal your $$. Trust no one. Especially me. Despite these instructions, most of those who engage in this type of trading will end up with little more than pessimism and useless tokens in their wallet. The only way to get easy returns is to be the one being paid to shill shit and getting others to pump your bags.

CreepyParsnip342

It’s called high frequency trading (HFT), and no, with your volume and tech it’s not possible. If you check the fee structure of CEXs, from Binance for example, you will quickly realise it’s not for retail to do HFT. On-chain even less so. The only chance you have is to find a pair with no fees, but I doubt they would do that to stable coins. They used to have one for BTC though. The topic you want to study is algorithmic trading. If you are interested, there are also community driven free to use projects like hummingbird, which is very reputable and trustworthy. That’s a good and safe thing to study to understand better the whole world of bots. You can also paper trade with bots to test your strategies before burning real money. Tradingview is a great free platform to try automated trading strategies and visualise them on charts without complexity and limitations of bots. But if you decide to download random 3rd party softwares, be aware that they can all contain malware that drains your wallets in an instant, when they decide to do so. Usually nobody gives anything valuable for free, no working strategies, and even less so bots with working strategies, because that would give away their potential edge from trading. So usually there is some hidden intention to make money somehow, and if it’s not you paying willingly it’s likely something else. And formatting your PC afterwards may not remove higher level malware. But I want to say I highly doubt you can monetise HFT with stable coins, it’s super heavily competed and any profit you may even in theory make dies quickly with fees and losses. Also even if your tech was high enough, the CEXs have hidden priorities for orders, so yours will always be in disadvantage and every ms counts in this game.

wtfCraigwtf

Yes, there is plenty of HFT bot trading of stocks, but WASH TRADING is ILLEGAL. There's a reason for it, wash trading allows someone to move the price as much as they like. You're buying your own orders, all the way from $61k BTC to $70k BTC. And you're using USDT phunnyy money to do it, fresh from Paulo Ardoino's ass with no backing. The cucks here haven't figured it out yet and OP is trying to gaslight them into not DYORing.

Profit_Node

Comp Scientist Here. Literally worked at government level for applied innovation of distributed technology (My job was to scientifically review each network which had received viable social consensus eth, btc, sol etc) Ethereum and it’s L2 ecosystem we’re laughed out of the room by us Comp Scientists. It’s almost a child’s attempt at a network. Solana does a few things extremely impressive - mimicking the power of parallel scope nets for things like HFT without compromising at all on decentralisation. What’s interesting is the public access and being able to handle such volume of data. Even if this was not a blockchain it would be used by major data transmitters for sure. It is in our government research we discovered just how decentralised solana is - it’s the most censorship resistant and decentralised “smart contract” network that exists today. Given that it scales with hardware developments it’s also likely to keep that crown going forward. So - Does solana suck? No - blockchains suck. However Solana is actually built by engineers who understand what computer science is and therefore it is reasonably functional and scalable in comparison to all other networks. P.S - Those saying ETH has no switch whereby they can centralise lock you out of things have not seen the rulings whereby exchanges can allow the eth foundation to pause deposits and withdrawal from CEX at any moment. I have seen these, because we are legally required to at the government level.

Itslittlealexhorn

I think you're exaggerating calling it more insidious than HFT. At least with the EVM it's all out there. Sure a lot of users are clueless about the inner workings, but that applies to both HFT and MEV. It's a flaw for sure and ETH devs have always called it that, but as long as you allow block proposers to build their own blocks you simply cannot prevent it. Flashbots et al themselves are more of a solution than part of the problem, they're doing the heavy lifting of MEV and thus allow node operators with limited resources to stay in the game, preserving decentralization. I don't see any evidence that Flashbot is bribing eth development to preserve MEV. If that was actually happening it would be a huge deal.

vanmanjam

That's what happens when the HFT gets involved

universoman

What percentage of trades do you think are made by real people pressing a buy button? Its all HFT firms, quants and bots that have most of that volume

thekoonbear

1. ETFs like that will be almost entirely in the asset, in this case Bitcoin, with the exception of a small portion kept in cash for operating purposes. 2. It will not be an exact peg but it’ll be damn close. There’s plenty of HFT firms that operate in ETF arbitrage to keep ETFs trading near NAV. Now in this case trading Bitcoin is a little more expensive fee wise than trading futures so there is more wiggle room but it still will be very very close to NAV.

LionRivr

Price moves in crypto and stocks nowadays is primarily from Whales and HFT algo trading bots. Any “News” articles are just pre-written tools used by institutions to “justify” price movements to give the sheep a “reason”.

ejpusa

There are bugs in those HFT trading algorithms. They are not perfect. Source: Coder, for decades. :-)