Offshore Crypto Exchanges Compared to Predatory Casinos, Analyst Warns

A crypto analyst has drawn a stark comparison between offshore crypto exchanges and massive gambling operations, claiming that the real forces behind Bitcoin and other cryptocurrencies aren't retail investors or institutional buyers, but the unregulated futures markets.

According to Marty Party, these exchanges, which collectively handle over $100 billion in daily transactions, create artificial volatility, driving prices up and down to trigger liquidations and profit from traders’ losses. He believes that this practice is more profitable than traditional gambling markets like Las Vegas or global sports betting combined.

Party argues that these platforms hold significant sway over crypto prices, manipulating the market by leveraging futures contracts. They do this by forcing liquidations in both directions—by pushing prices low when traders expect them to rise, or driving them higher when traders are betting on a drop. This cycle of manipulation, Party asserts, ensures that the exchanges always come out ahead, no matter the direction of the market.

Binance, a leading player in this space, is particularly responsible for the chaos, with its perpetual contracts acting as a dominant force in setting crypto prices globally. This instability makes it difficult for professionals to navigate the market, as forced liquidations wipe out positions, often leading to large-scale volatility.

The analyst stresses that this unregulated environment is detrimental to the credibility of crypto as a whole. Unlike traditional markets that are closely watched for manipulation, these offshore exchanges operate outside the reach of regulators. As a result, Party urges the Commodity Futures Trading Commission (CFTC) to take action, warning that without oversight, these “predatory casinos” will continue to manipulate the crypto market, preventing it from maturing into a fair and transparent system.