2. It undermines the credibility of one of the largest bitcoin exchanges and thus the currency itself.
3. It undermines claims of Bitcoin value which are based on prices set on this exchange.
4. He's claiming that Bitfinex are engaging in legally dubious schemes to appear solvent, which is important.
If you use any cryptocurrency like this you should be very worried about reports that it can so easily be gamed and the market manipulated with no consequences, and that larger players in the 'market' are dishonest and failing to regulate manipulation. For every obvious and crass attempt like this there will be a lot more insidious market manipulation by big players like exchanges or large exchange customers who operate with no oversight and can set the price and profit from it.
1. It's not regulated, so it's not illegal. This is not your mom's exchange.
2. So be it. This is what traders in this particular field chose. If you want boxing, go box, if you want no holds barred, go do that.
3. To the detriment of that particular exchange. So be it.
4. Dubious, but still, if you want centrally regulated assets, there are plenty of opportunities. Cryptocoin exchanges are what they are. The response to shenanigans is not "This is unfair. The government should step in!" but "We need a bigger bot."
2. It undermines the credibility of one of the largest bitcoin exchanges and thus the currency itself.
3. It undermines claims of Bitcoin value which are based on prices set on this exchange.
4. He's claiming that Bitfinex are engaging in legally dubious schemes to appear solvent, which is important.
If you use any cryptocurrency like this you should be very worried about reports that it can so easily be gamed and the market manipulated with no consequences, and that larger players in the 'market' are dishonest and failing to regulate manipulation. For every obvious and crass attempt like this there will be a lot more insidious market manipulation by big players like exchanges or large exchange customers who operate with no oversight and can set the price and profit from it.