The Surprising Factor Behind Crypto Flash Crashes—And It's Not Trading Bots

Arkadiy Amiryan, Chief Operating Officer of Veles Finance, challenged the idea that user-friendly crypto trading bots are responsible for flash crashes or amplifying herd behavior in the digital asset market.

Instead, he pointed to social media hype and high-profile endorsements as the primary drivers of sudden price swings, emphasizing that bots alone do not destabilize the market.

"In my opinion, cryptocurrency market crashes happen due to loud and sometimes reckless statements from the most popular people," Amiryan told Benzinga in an interview. "Someone says or writes something in X—and then we see a rapid fall of some project. This looks like unfair play."

He emphasized that scams and speculative tokens, rather than automated strategies, pose the more immediate threat to market stability.

Amiryan highlighted that trading bots, like those offered by Veles Finance, are neutral tools that execute predefined strategies without emotional bias.

“Bots don't suffer from FOMO, but the blind spot is always risk management. If users fail to set proper safeguards, that's where problems can arise,” he said.

Founded in 2022 and based in Dubai, Veles Finance provides a no-code, cloud-native platform enabling both novice and advanced traders to deploy customized automated trading strategies across leading exchanges such as Binance, Bybit, and OKX.

Veles currently supports over 49,000 traders, with $418 million in total bot deposits and over $79 million in cumulative user profits.

Veles Finance on Thursday expanded its reach through a strategic partnership with cryptocurrency exchange Bitget, integrating its automated trading bots into the Bitget platform.

This collaboration gives Bitget's global user base direct access to Veles's customizable bots across both spot and futures markets.

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Amiryan acknowledged the growing accessibility of trading bots, thanks to user-friendly platforms like Veles, but stressed the company's focus on responsible trading.

“We always educate our users about risk management. Trading bots are powerful, but users must understand their strategies and market conditions to avoid unnecessary exposure,” he said.

The Bitget-Veles partnership also provides users with advanced risk management features, including dynamic stop-losses, multi-take profits, and trailing profit mechanisms.

Veles's professional-grade backtesting engine further allows users to refine strategies using historical market data before committing capital.

As automated crypto trading continues to grow, Amiryan emphasized that scalability will not come at the cost of user-centricity.

“Our priority is always our users. Without them, we cannot grow. As we scale, we'll keep improving user experience, ensuring that customization and control remain at the core of our product.”

Industry participants like Amiryan believe that while algorithmic trading may introduce efficiencies, the key to navigating crypto's inherent volatility lies in robust education, risk awareness, and strategic execution, not the abandonment of automation.

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