Well, if you were making a percentage of every trade, and say , on black friday, with 300,000 trades, you cleared approx. $40,000 roughly, and when prices dipped,
The money they earn with the trade is because of their work. It is exactly the same as the money you earn with you own work. This is paid by the users and is well accepted. You know, when signing on MtGox, that you give 0,65% of you trade as a fee.
or you created artificial selloffs and prices dipped, you used your profits to buy up everything you could, eventually in short time, you would a mass a large sum of bitcoins, right?
How could they create artificial selloff? Every order is done by an user. The only thing that the owner could manipulate is to add fraundulently founds to his own balance. Let say that he add 10000$ without effectively sending those to the bank account. Then, indeed, he can do some transaction. Well, in that case, the money would have to be send anyway as soon as someone withdraw.
Thus, there is no real fraud.
Let say that MtGox owner create thousands of bitcoins to manipulate the market. This is a big risk because if there is a bank rush and everybody withdraw their bitcoins, they will not be able to pay.
Being the exchange, I don't think you are supposed to use your own exchange for trading. That's some form of manipulation of the markets, right?
How are they supposed to change their bitcoin for dollars then? They probably have lot of providers who don't accept bitcoin. And how would you enforce such a rule anyway?
