Bitfinex Bitcoin Exchange is going to introduce the Shimmer tool, intended to detect suspicious activity and provide fair conditions for the work of traders.
Bitfinex launches Shimmer to monitor its own markets.— Paolo Ardoino (@paoloardoino) March 24, 2020
Ensuring a fair and safe environment for the entire community is our priotity.https://t.co/HxKLjy7P2E
The new technological solution is designed to increase confidence in the prices fixed on the platform and ensure the safety of funds and customer data. That is going to be achieved through the fight against manipulative systems and trade abuses.
First of all, Shimmer aims to distinguish the so-called wash trading, which consists of the simultaneous purchase and sale of assets to create the illusion of high trading activity.
Also, the solution should help eliminate the so-called layering, which involves placing and subsequent cancellation of orders to distort the real situation with stocks and demand for a particular token.
The mechanism of Shimmer’s work is to search for abnormal situations and then connect the Bitfinex monitoring group. The company's specialists receive a summary of any suspicious trading patterns for all pairs offered on the cryptocurrency exchange and evaluate the appropriateness of taking the following actions.
Earlier, Bitfinex and Tether integrated a solution from analytic company Chainalysis to track suspicious transactions in real-time.