Illegal and unethical actors dominate crypto markets

Money launderers, fraudsters, and manipulators are not edge cases - they're core participants.

Analysis

Unlike regulated markets, crypto's major players include:

Bad Actors:

• Money launderers moving billions
• Pump and dump coordinators
• Wash traders inflating volume
• Market manipulators spoofing order books
• Exchanges trading against customers
• Stablecoin issuers creating supply from nothing

Why It Matters:

• "Fair" price discovery doesn't exist
• Volume metrics are unreliable
• Large moves may be manipulation, not signal
• Counterparty risk is ever-present

Trading Implication:

Assume manipulation until proven otherwise. Filter for authentic signals. Don't trust reported metrics at face value.

This hypothesis is based on observable market structure and academic research. Trade accordingly.