One of the reasons behind the cryptocurrecny projects is to convince investors into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers?
How exactly is that a bad thing? Everyone is fighting for whats theirs. These exchanges are into business, so they are doing what they are supposed to do which is to convince a lot of people and get investors to invest their money on their platform. You would also do the same if you were part of it.
Moreover, there are different types of trading competitions. Some exchanges are conducting on volume based and some others are conducting based on number of trades. If you notice both are significantly impacting one particular trading pair if your concerns are true. So, we cannot say anything about trading competitions will be giving negative consequences alone when people will be trading for the reason of competitions.