Why And How Crypto Exchanges Post Fake Trading Volumes

Why And How Crypto Exchanges Post Fake Trading Volumes

 

It’s indisputable that the crypto industry is growing exponentially, but there have been claims that the data presented by most of the quarters in play may not reflect the truth on the ground. In fact, a recent study by Bitwise found that roughly 95% of the trading volumes reported by crypto exchanges are deliberately doctored. Bitwise studied data from 81 crypto exchanges. 1/ New Research from us @BitwiseInvest . As part of 226 slides presented to the SEC on our ETF filing, we did a first-of-its-kind analysis of *order book data* from all 81 exchanges reporting >$1M in BTC volume on CMC. TLDR: 95% of reported volume is fake but LOTS of good news! pic.twitter.com/TuXLlDCRyP — Bitwise (@BitwiseInvest) March 22, 2019 It’s the weight of these claims that led to CoinMarketCap announcing plans to restructure its crypto listing metrics a few months ago. CoinMarketCap is perhaps the largest information resource for crypto market standings. We are listening to all our users’ feedback, and we are working hard to add a suite of new metrics so users can get a fuller picture of exchanges and crypto on the site. What are some new metrics you would like to see? Share with us. https://t.co/ZgEs80lH1S — CoinMarketCap (@CoinMarketCap) March 26, 2019 Understanding Crypto Trading Volumes

Like any other market, the crypto space boasts various entities that track the trading activities happening within it. These are basically the transactions initiated and closed at any given time, with the most immediate metric being a […]