GMO Coin voices concerns about use of automated trading software

Maria Nikolova

As the use of automated trading software may lead to system overload and thus hamper the trading of other clients, the company may suspend or restrict the dealings performed via such software.

GMO Coin, the virtual currency trading subsidiary of GMO Internet Inc. (TYO:9449) has earlier today voiced its concerns about certain risky trading methods employed by some of its clients.

The company noted that some of its clients have been using automated trading software. This, GMO Coin warns, may lead to a system overload and, thus, may negatively impact the trading of other clients. In cases where the company determines that a client is using automatic trading software, it may suspend or restrict dealings of this client.

In addition, the company has prohibited transactions done from accounts using other people’s names, such as transactions using names of family members or accounts of friends. The trading using a pseudonym is banned too. When there is a suspicion that a person other than the account holder is using the account, the company may limit or stop the dealings.

The warnings, which underline the risks that cryptocurrency businesses face, were issued just a day after GMO Coin confirmed that its clients had experienced issues accessing its platform late on November 13, 2017. The first problems were reported around 23.00 (Japanese time) on November 13, 2017, with customers experiencing problems with exchange rates and with connecting to the platform. GMO Coin has dubbed the incident a “system failure” but did not provide any details on the cause for what had happened. The service was restored around midnight.

The company said it continued to monitor the situation and was examining the scope of the problem. There has been no elaboration on the causes of the issues thus far.

At the same time, GMO Coin, which officially launched in May this year, continues to expand its services. In September, it added Bitcoin Cash and Ethereum to its offering, whereas in October, it added Litecoin. Ripple and Ethereum Classic are set to join the lineup in November and December, respectively.

Read this next

Industry News

21 Republican representatives want to “End the Fed”

“Americans are suffering under crippling inflation, and the Federal Reserve is to blame.”

Retail FX

Scope Markets launches unleveraged trading

“Whilst our traditional contract for difference (CFD) products continue to prove incredibly popular, the Invest account is unleveraged and only allows ‘long’ positions to be taken, a combination that significantly reduces the risk of capital losses.”

blockdag

Unlocking Profit Potential: Earn Returns with DecodeEX Experience Bonus!

DecodeEX, the innovative brokerage subsidiary of Decode Global, announced its experience bonus campaign, offering every user the opportunity to maximize their strategic trading potential with up to $10,000 in experience bonus. 

Market News

Pretiorates’ Thoughts 28 – Precious metals and base metals out of control

Ten days ago we mentioned in Pretiorates’ Thoughts 26: Chapter 2 should start with Precious Metals.

Retail FX

Webull launches discount brokerage in Malaysia

“Making investing more inclusive and accessible to all, Webull Malaysia brings best-in-class tools and information to empower investors of all levels with knowledge and skills to help them make better investment decisions and achieve their investment goals.”

Digital Assets

Hidden Road adds OKX’s Nitro Spreads into prime brokerage

“Hidden Road continually seeks to increase market access and capital efficiency through expanded prime brokerage offerings. Integrating OKX’s Nitro Spreads product builds upon this philosophy by extending our counterparties’ ability to execute risk-managed arbitrage strategies.”

blockdag

Dev Release 31: BlockDAG’s SHA-3 Upgrades Propel Crypto Mining Innovation as Miner Sales Approach 5800 Units

Learn about BlockDAG’s 31st Development Release, which includes advanced SHA-3 updates and a significant increase in miner sales, driving advancements.

blockdag

BlockDAG Dominates 2024 Crypto Trends: Surpasses $28M in Presales Amid Strategic Partnerships

Explore BlockDAG, Shiba Inu, and Kaspa Killer’s rise in 2024’s crypto market, focusing on BlockDAG’s $28M presales, strategic partnerships, and innovative technology.

blockdag

BlockDAG’s $30 by 2030 Valuation Prediction and Roadmap Reveal Gains Traction From Filecoin and XLM Investors

Discover why BDAG’s $30 price prediction by 2030 outshines Filecoin Investors’ hopes and XLM’s recent surge with a booming presale and clear roadmap.

<