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Binance adds self-trade prevention feature to stop market manipulation: all the details

The global crypto market, currently emerging from a months-long slump, is expected to see more involvement from traders and investors in the coming days. With trading expected to increase, crypto exchange Binance has decided to take steps to prevent nefarious actors from manipulating the market and misleading other users. The company has introduced a new feature called Self Trade Prevention (STP) to ensure that market manipulators do not expose others to financial risk.

The feature has been launched for Binance’s API users. This service from the exchange allows algorithmic traders to automate trading using programming language.

Enabling the STP feature would limit the implementation of self-trading orders, where traders trade among themselves to give others the impression that trading activities around a particular crypto are more than they actually are.

By doing so, said crypto assets can attract and deceive other unsuspecting traders or investors, who engage in manual trading and may incur losses.

“This optional API Order feature allows users to set an STP parameter for each spot order to determine the impact of a potential self-trade. There will be no impact to users who do not use this feature,” Binance said in a statement blog post.

The exchange also posted the official announcement regarding the feature on Twitter, revealing that the STP feature would go live from January 26.

“Please note that this feature is only available via API. Users on Binance Web, the Binance app and the Binance desktop app are not affected,” the blog post read.

Binance has decided to enter 2023 with a Web3 scholarship and training program that would get 30,000 people on board.

The University of Western Australia, the University of Nicosia in Cyprus, the Frankfurt School of Finance & Management in Germany and the Utiva Technology Hub in Nigeria have agreed to participate in Binance’s initiative as educational partners.

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