Report: Only Binance and Bitfinex is not a fake crypto-trade volume
Home News report: Only Binance and Bitfinex fake crypto-trade volume is not
Marcus Misiak –
The Blockchain Transparency Institute (BTI) has released the December 2018 Exchange Volumes Report. According to this report, only 2 report from 25 of the most important crypto-currency exchanges in a proper volume of trade. These two exchanges are Bitfinex and Binance. The Rest of the exchanges will operate, Wash Trading, which inflates the volume of trade. A total of 87% of all trading volumes to be a fake in the 25 most important stock exchanges.
Even CoinMarketCap is not a reliable source because of the 25 stock exchanges on CoinMarketCap, 11 your volumes by up to 99% fake. In the report, the researchers have calculated the true volume of Coinmarketcap’s Top 25 BTC Trading pairs. Most of these couples have an actual volume of less than 1% of reported volume on Coinmarketcap. Twelve of the largest stock exchanges, such as Huobi and OKEx more than pretend to be 75% of the trading volume, as the chart below shows.
Many of these exchanges are located in places such as the Cayman Islands and Gibraltar, which do not have many rules, in order to keep the Manipulation under control. Binance with headquarters in Malta and Bitfinex, based in British Virgin Island are the only two that are excluded by the allegations of Manipulation in the report (Real Volume: 100%). Bifinex because of the other point of criticism: the Tether-controversy: There are numerous theories about it, that the huge Emission of the Tether at the end of the year 2017 has influenced the crypto-Bull-Run in the same period.
Under the leadership of CEO Changpeng Zhao aka CZ Binance therefore seems to be the most reliable Option that there is, according to the report. The stock market has recently committed to donate all of their stock exchange listing fees to charitable organizations. She also actively participates in the development of the Ecosystem, by taking initiatives for imparting education and financing.
The report also claims that there is clear evidence of Wash Trading on most stock exchanges. In the report it is stated:
For our December report, we have given a deeper insight into specific trading pairs on the exchanges, the clear evidence of Wash Trading provide. This has always been our goal, but we wanted to ensure that these data are as accurate as possible, so we have updated these Algorithms in the last 3 months, and perfected. During this time, we have spent countless hours watching the order books to analyze the volume of data and to speak with Market makers, high frequency traders and Trade Surveillance consultants. We have collected a huge amount of data and are now confident to publish these Figures.
Wash Trading is a Form of market manipulation in which an Investor buys at the same time, a financial instrument and sold. The reason for this is in the rule, in order to increase artificially the volume of trading and in order to let the impression arise that this financial instrument is popular, as it is indeed the case.
OKEx to be the 30 most important Token in the Wah Trading. The stock market have benefited the most from the referral traffic from Coinmarket Cap. By the adjustment of the volume of OKEx the stock market but still in the Top 10 by trading volume on CMC. Huobi to the pairs 25 of his best Trade, but to a lesser extent than OKEx, manipulate. HitBTC is to operate its 25 best couples, Bithumb with Monero, Dash, Bitcoin, Gold, and ZCash Wash Trading.
This is a shocking revelation, and is expected to come as a shock to a lot of crypto-investors that want to make an informed decision, even if rumors are circulating about it for some time. But there is also hope: The entry of institutional players in 2019, as the Nasdaq and Bakkt may lead to more regulations and the likelihood of manipulation of data to reduce.