Binance claims that this new trading feature can prevent market manipulation

The global crypto market, currently recovering from a months-long slump, is expected to see more engagement from traders and investors in the coming days. With trading expected to surge, crypto exchange Binance has decided to take action to prevent nefarious players from manipulating the market and misleading other users. The company has introduced a new feature called Self Trade Prevention (STP) to ensure market manipulators expose others to financial risk.

The feature was launched for the users of binance API. This exchange service allows algorithmic traders to automate trading using a 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 activity is trading around a specific one crypto are more than they really are.

In this way, the said crypto assets could attract and deceive other unsuspecting traders or investors who might engage in manual trading and incur losses.

“This optional API Orders feature allows users to set an STP parameter for each spot order to determine the consequences of a potential proprietary trade. There will be no impact on users not using this feature,” said Binance in a blog entry.

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

“Please note that this feature is only available through the API. Binance Web, Binance app and Binance desktop app users will not be affected,” the blog post added.

Binance has decided to enter 2023 with a Web3 scholarship and education Program that would bring 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 join Binance’s initiative as educational partners.