You are right that @benjyz has made good points against exchanges being LPC.
I didn’t make this clear. I was thinking of exchanges being LPC in NBT/USD trading pair solely.
It will be hard to manipulate the market offering only NBT/USD liquidity.
And with the reporting that is required by LPC’s they will have a hard time to manipulate something and never getting caught with it (that applies to a certain degree to non-USD pairs as well).
Of all trading pairs I consider the USD trading pair the utmost important.
I don’t consider buy walls at 0.998 USD/NBT and sell walls at 1.002 USD/NBT being impartial or manipulating a market.
If crypto currency exchanges would like to be perfectly impartial, they’d need to step out of USD and other fiat currencies as well.
But there needs to be a way to deposit and withdraw fiat money to connect the exchange to the rest of the financial world.
I want that connection for NBT as well!
Knowing that the exchange offers deep liquidity in the USD trading pair, will make it easy to do arbitrage on non-USD trading pairs leading to a very little spread.
NuBots in non-USD trading pairs will simply not be necessary then.
I don’t give up that idea very easily