Quote from: severaldetails on May 02, 2017, 08:03:54 AM

Quote from: Beparanf on May 02, 2017, 07:51:35 AM

Quote from: deisik on May 02, 2017, 06:48:40 AM

Quote from: mrcash02 on May 02, 2017, 12:53:44 AM

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

This is actually right. Exchamgr are having profit from transaction fee and they are not the one who buy and sell the coin you are trading. The devs of the coin is the one who is giving funds for the exchange to cover some buy/sell order and the majority of the order on exchange came from different traders too. So having a flash punp is not an issue for exchangr

I think the exchange would have a problem if everybody would want to cah out against a fiat in a short time.
The altcoins are stored at the accounts of the exchanges, I am relatively sure about that.
But the fiat, I do not think that they would have enough of it if everybody would want to cah out. Especially not after a big jump in price.

You're assuming exchanges aren't solvent? That's really bad for an exchange.