Crypto Exchange Manipulation: A Threat to Trader Trust?
If you’ve been trading crypto for any length of time, chances are you’ve experienced or noticed some form of market manipulation by exchanges. Whether it’s price slippage, unexpected liquidation spikes, or sudden changes in trading conditions — these tactics are becoming all too common, and unfortunately, ALPACA is the latest example.
The ALPACA Incident: Manipulation Before Delisting?
The ALPACA project, scheduled to be delisted from Binance Futures on 2 May 2025, has recently come under the spotlight. Just days before the delisting, a suspicious price movement caused massive liquidations among short traders. Many believe this wasn’t a natural market event — but an intentional move to trap traders and force liquidation before the trading pair disappears.
Such activities raise serious questions about the transparency and fairness of major centralized exchanges.
Funding Rate Loopholes: Another Layer of Exploitation?
Another concern that Binance users have been voicing is the hourly funding rate charges. Originally designed to balance long and short positions in perpetual futures, funding rates are now being seen by many as yet another form of systemic manipulation — especially when charged aggressively and inconsistently.
In cases like ALPACA, where a project is already on the brink of delisting, implementing high or rapidly fluctuating funding rates adds unnecessary pressure on traders — pushing them into losses faster than expected.
What This Means for the Future of Crypto
If such manipulative practices continue, it’s likely that many traders and investors will lose trust in the crypto space. Fair markets are built on transparency and rules — not hidden tactics that wipe out unsuspecting users.
Crypto was born as a decentralized movement, promising freedom from traditional market manipulation. But now, ironically, some centralized crypto exchanges are adopting the very behaviors the blockchain industry was created to fight against.
