Re: Nobody Can Have Benefit From a Big Pump

If Bitcoin price pumps from $1300 to $3000 in few hours, nobody would make profit from it, because the exchanges wouldn't allow you to sell your Bitcoins and make the fast profit, it would bring a big loss for exchange sites.

Do you agree with this?

If exchange itself is not trading, they basically don't care

More specifically, they care for fees, and trading fees obviously come from trades, so when there are abrupt price movements the trading volume spikes too. And it doesn't matter whether the price flash crashes or flash surges. So, they are in fact interested in volatility and price being "alive", therefore prices pumping to 3,000 dollars per coin would provide exactly that, i.e. insane levels of volatility

Do you happen to know if exchanges have an in-house team to trade on their own platform with their own holdings for the potential aspect of increasing their profits?

No, I don't know that for sure

But given that the largest currency, commodity and stock exchanges are regularly caught exploiting their advantage before their clients (which is forbidden by trading laws and even special agencies like SEC or CFTC are set up to control that), we can be almost 100% sure of that. Basically, it is easy and sure money for an exchange, and it would be strange if they didn't take this opportunity, especially when the total majority of cryptocurrency exchanges are not regulated in any way. Though it is not about trading as such, in other words, they don't need to first buy low and then wait to sell high. They typically buy low sell high simultaneously (and earn profits instantly as well as risk free)