Bitcoin, Crypto currency, Blockchain

Wash Trading, such As stock investor cheat


Certain stock exchanges to fool the wrong volume of trade. The fraud on the part of investors can have far-reaching consequences. Investors and Ranking-platforms are faced with a Problem.

Wash Trading is the process called when financial will be bought products in less time and sold to a high trade to fake volume. A widespread Problem that has also taken in the crypto currency world in its place. Because if exchanges Wash operate Trading to falsely liquidity, trust and safety to pretend, especially on the cost of the investor. With the confidence of the investors then you can very much damage.

But let’s start from the beginning. If exchanges Wash run Trading, is how when you put all the products in the refrigerator to the front so it looks full, even though behind it all is empty. It is done so, as a strong trade with crypto currencies, would exist within an exchange platform for Mr, there are only a few of the traders that operate there, this set-up buy and sell game.

The reason is simple

Create and Implement Marketing and communication strategies and building a Community is more expensive than the setup with Wash Trading. Because it is a narrow niche, the use of the Fake purses.

The platforms, which create the Rankings, are torn. If you do not include the exchanges in the Ranking, instead of a regulation. Protecting some investors, but the credibility is undermined. After all, who determines what are the criteria and what it means for a stock exchange platform should be better is not listed?

If the Ranking sites decide, however,, all the stock exchanges based on the volume in the list, you can make them a reproach. Because in order to give the fraudsters a platform that brings even more coverage for their wrong business.

The Case BitForex

As a Crypto Exchange Ranks at 16. July, the exchange analyzed the platform BitForex in a detailed blog post that caused the stir. It had accumulated all kinds of evidence, to accuse BitForex of Wash trading.

For example, the Singapore-based stock exchange, has risen within a few weeks of 70 in 12th place in the list of the world’s highest-volume stock exchanges CoinMarketCap. With 227 million US dollars in trading volume BitForex is located on a height with reputed exchanges such as Kraken and Kucoin.

However, let’s take a look at the other inconsistencies in BitForex. The number of BitForex-Twitter-followers amounts to nearly 2,000. Meanwhile, in the case of Telegram 73.000. This large difference suggests that the Bitforex worked at the Telegram with Bots. In addition, BitForex claimed on Twitter to be in the EU licensed. In this Thesis, however, it is no evidence. On the Website of the project, the company specifies that to be registered in Seychelles and to work only with independent Teams in certain countries.

BitForex was also daring statements, such as that you would have 1.8 million users, day-to-day 15,000 other on the platform.

Crypto Exchange Ranks, said, however:

“We see that the number of UU [Unique Users] from BitForex to 29,000. In return, Kucoin has 889.000 individual users. Kraken has 666.000 UU. KuCoins number of UU is 30 times higher than that of BitForex, the number of UU Kraken is a 23-Fold higher.“

It is, therefore, a certain degree of caution and skepticism before relying on an Exchange. A possible way for Ranking the platforms in order to prevent a regulation and, simultaneously, to protect investors from fraudsters, it would be, as much information as possible in the Ranking. The abuse may be obvious and speak for themselves.

The U.S. authority CFTC has taken the problem of price manipulation, the investigations are ongoing.

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