Imagine how much money you could make by creating a bogeyman bitcoin wallet!
Step 1, Consolidate 94,000 BTC into one single address the entire crypto world is now watching.
Step 2, Send 1,000 BTC from bogeyman bitcoin wallet to exchange crypto wallet.
Step 3, Freak the shit out of the market. Promptly sell the entire lot in one single market sell order.
Meanwhile you've got another 50,000 BTC or whatever sitting on contracts leveraged with 100x margin in a short position across multiple accounts... essentially netting you 100,000 BTC profit if you can manage to tank the price just 2% on the 3 funds that Bitmex follows to create their index price... and you totally would selling 1,000 BTC at once from a well known superwallet.
Rinse and repeat... Eventually, I imagine you wouldn't even need to sell the coins on the exchange... just moving them there would be enough... (which would probably be illegal at least in the USA, see below)
And when the market gets wise... and everybody else starts shorting the price when you move your coins... you BUY 1,000 BTC in a single market order... stop hunting everyone's "sure things" (with mostly tight stops) and probably making you 500% return on a 5% move the opposite way... placed on longs of course.
(I am working on an algo bot, I think about this kind of stuff all day long!)
I had better start saving!
Side question... would this be legal? Moving the coins to exchange, signalling that you were going to sell based on precedent, and then not selling would be illegal by the nature of equities laws on fake bid or ask walls to move the price... like some trader at goldman was just arrested over for doing the same in the gold markets.
But just selling a lot of coin while you have another lot of coin in short positions would be perfectly legal, right?
[0] https://en.wikipedia.org/wiki/Unix_philosophy#Program_Design...