Fake cryptocurrency exchange volume

Our industry needs to address the issue of inaccurate exchange trade volumes. Can you guess what projects will be among the leaders? Please check your mailbox for a copy of the report. For the next phase of our analysis, we looked at 25 exchanges with large on-chain volumes that are not in the Bitwise

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However, Ribes soon found that while there were minor discrepancies in slippage between currencies, there were massive discrepancies between exchanges. However, Ribes is not the first to claim that a large number of cryptocurrency exchanges including OKex are guilty of inflating their volumes, and he has not been the. At the time, Fake cryptocurrency exchange volume. If the inflated trading volume problem is as widespread as it is believed to be, then what are the reasons behind it? In other words, higher volumes mean greater visibility and more credibility.

Approximately 95% of reported BTC trading volume is fake

Yet there are some items left out in this presentation to the SEC. And despite the fabricated volumes across crypto exchanges, this presentation makes a compelling argument there is maturity. It cannot be disputed there are issues with exchanges reporting fake volumes. The report states that Binance and Bitfinex comprise over 50 percent of the total bitcoin spot volume. Yet neither of these two exchanges have normal banking relationships like others in the report do. Both exchanges have significant regulatory issues that make their inclusion in this presentation to SEC concerning.

Look at the core, not the wrappings

Bitforex, a cryptocurrency exchange that scarcely scraped the top by trading volume until recently, has been accused of generating false trades on a mammoth scale. Crypto Exchange Ranks, which pulls in open source data from exchange APIs, has published a report in which it accuses Bitforex of creating fake volume and Coinmarketcap CMC of being complicit in the scam.

Fake trading volume, defined as buy and sell orders designed to artificially create the impression of demand, are a running motif in the cryptocurrency world.

For as long as anyone can remember, various exchanges have been accused of wash trading and inflating their volume. Creating fake volume may sound like a relatively minor transgression, but it can have major ramifications for traders. Any exchange that is willing to create false volume may have few qualms about committing more egregious crimes against its users. Until recently, Bitforex was a little-known exchange, languishing around fake cryptocurrency exchange volume in the world by trade volume.

In a detailed and compelling blog postCrypto Exchange Ranks outlines its case for Bitforex having generated fake volume. The Singapore-based exchange does have 65, Telegram followers, but much of this can be attributed to the usual spate of bots coupled with airdrop token chasers. Bitforex claims in its Twitter bio to be licensed in the EU, but there is no evidence to support this; in fact its website states that the platform is licensed in the Seychelles and Philippines.

The site also includes such bold claims as having 1. In turn, Kucoin has K unique users. Kraken has K unique users. As we have already discovered through SimilarWeb, the exchange receives the bulk of the new traffic through the referral source — CoinMarketCap; thus, the platform immediately attracts attention.

Other crypto comparison sites have been less eager to report the sort of inflated figures produced by the likes of Bitforex, regardless of what the data pulled by API might say. With its shoddy web design, poor English, and almost certain fake volume, Bitforex does not inspire confidence. But until Coinmarketcap makes a stand against blatantly falsified volume, exchanges will be incentivized to cheat the system and lure in gullible traders eager to try out the next big platform.

Let us know in the comments section. Need to calculate your bitcoin holdings? It’s long gone. He’s previously written whitepapers for blockchain startups and is especially interested in P2P exchanges and DNMs. Share this story:. Dec 18, Dec 13, Dec 6,

Trading Volume on Most Cryptocurrency Exchanges is Fake

Massive Discrepancies in Trading Volume

It may seem shocking, but there’s a simple explanation for. That matches our understanding of how most users trade on exchanges. Any faks with a substantially higher ratio may exfhange overreporting its trade volume. Download Report. Someone needed to comprehensively cryptocurrfncy the amount of wash trading cryptocurrency exchanges are conducting. Gotbit also has an algorithm allowing the bots to dump a token without affecting the price: to do that, the bot looks cryptocurfency buy orders already present in the order book and quickly fills. Once it appears on that influential market data site, an asset can gain the attention of larger platforms and bigger investors. A new fake cryptocurrency exchange volume report reveals details on how exchanges fabricate volume and makes new projections on Researchers developed six criteria to apply to a sample of 48 crypto exchanges. Yet on some exchanges, trades get executed at prices and sizes that fall fake cryptocurrency exchange volume anything sitting on the order book. Trade volume increases also help exchanges climb the ranks on public industry data aggregators like CoinMarketCapgiving them greater visibility. Otherwise the exchanges will get blacklisted.