Popular collective crypto trading strategy is vulnerable to losses and insider exploitation, according to new research – DL News
- Researchers warn collective crypto trading strategies are vulnerable to exploitation.
- These schemes promise to place institutional-grade investment strategies within the reach of retail investors.
A new academic paper warns that collective crypto trading schemes — which pool user funds and trade automatically with them — are inherently vulnerable to losing profits and being exploited by insiders, no matter how they are designed.
These findings come from research by academics at Cornell Tech. In their research, they examined the fundamental trade-offs between profitability and economic fairness in such systems.
The team of eight researchers who co-authored the January 2 paper found that these Collective Investment Algorithms, or…
