min to read

2019-09-23 12:42:27




News

Study: three quarters of the largest bitcoin exchanges falsify 90% of trading volumes

SCAM volumes

min to read

2019-09-23 12:42:27

The volume of fictitious transactions on the leading cryptocurrency exchanges has decreased by 35.7% since the beginning of the year.

The volume of fictitious transactions on the leading cryptocurrency exchanges has decreased by 35.7% since the beginning of the year. However, platforms continue to display fake trading volumes, according to a report by the researchers from the Blockchain Transparency Institute (BTI).

 

The most transparent, according to the researchers, turned out to be the exchanges Kraken, Poloniex, Coinbase and Upbit.

 

The leaders in fake trading volumes are OKEx and Bibox - fictitious trades on these exchanges make up 75%. However, their real trading volumes still allow them to be in the top twenty platforms.

 

Commenting on the analysts' data, Andy Cheung, the Head of Operations at OKEx, said that the exchange did not falsify trading volumes, and the BTI report was incorrect.

 

 

Exchanges from the USA and Japan are highly transparent, which may be due to strict regulatory standards in these countries. However, this factor does not always ensure transparency of exchanges, the BTI noted.

 

"South Korea also has a carefully controlled regulatory system, but Bithumb falsifies Dash and Monero coin trading volumes by more than 90% throughout the year," the document says.

 

The researchers also analyzed the data from Binance, Gemini, Bitflyer and Indodax. Fake trading volumes on these exchanges have decreased and are now at relatively low values (below 10%).

 

The BTI noted that since the beginning of the year, many exchanges have introduced more effective solutions to identify and close accounts with histories of fictitious trading.

 

At the same time, CoinMarketCap service continues to include “fraudulent exchanges” in the top 10 of its rating according to adjusted trading volume. The top ten include LBank, BW.com, Bit-Z, Coinbene and OEX. Fake trading volumes on these exchanges, according to the BTI, range from 96.9% to 99.7%.

 

73 of the top 100 crypto exchanges, according to CoinMarketCap, falsify 90% of trading volumes, the researchers note.

 

Data on bitcoin trading are falsified by 50%, Ethereum - by 75%. Transactions with Ethereum Classic, Monero and Dash are fictitious in 80% of cases.

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