Can high Coinbase spreads indicate market manipulation in the cryptocurrency industry?

3 answers

• NourJan 29, 2021 · 5 years ago
  High spreads on Coinbase can potentially indicate market manipulation in the cryptocurrency industry. When the spread between the buying and selling prices on Coinbase is significantly higher than on other exchanges, it suggests that there may be artificial price manipulation happening. Traders with large amounts of a particular cryptocurrency can exploit this by artificially inflating the price on Coinbase and then selling at a higher price on other exchanges. This can create a false sense of demand and lead to price manipulation. However, it's important to note that high spreads alone are not definitive proof of market manipulation and other factors should be considered as well.
  689

  345
• nevaldasAug 20, 2023 · 2 years ago
  Absolutely! High spreads on Coinbase can be a red flag for market manipulation in the cryptocurrency industry. It's not uncommon for manipulators to take advantage of the liquidity and trading volume on Coinbase to artificially inflate or deflate prices. By creating large spreads, they can manipulate the perception of supply and demand, leading to price manipulation. It's crucial for traders and investors to be aware of these potential manipulative practices and exercise caution when trading on Coinbase or any other exchange.
  531

  177
• David SargsyanOct 26, 2025 · 22 days ago
  As an expert in the cryptocurrency industry, I can confirm that high spreads on Coinbase can indeed indicate market manipulation. However, it's important to approach this issue with caution and not jump to conclusions based solely on spreads. Market manipulation is a complex issue that involves various factors, and spreads alone may not provide conclusive evidence. It's advisable to consider other indicators and factors such as trading volume, order book depth, and market sentiment before making any judgments about market manipulation in the cryptocurrency industry.
  572

  143