"About 88-92% of daily trading volume is fabricated," says report

09 Jun, 2019
by Richard Allen
Exchange
About 88-92% of daily trading volume is fabricated, says report

According to a recent market surveillance report by the Blockchain Transparency Institute, the world’s top exchanges, including Binance, show signs of wash trading.

The institute has spent the last four months developing new algorithms designed to catch individual accounts involved in wash trading, a deceptive process whereby traders buy and sell securities with the purpose of feeding misleading information to the market.

BTI’s report states that over 10% of trading on Binance is wash trading. While most of the exchange’s top trading volume pairs like Bitcoin and Ethereum were between 85% and 90% clean, there were about 30 trading pairs making up the majority of the wash trading on Binance, with some constituting 75% of wash trading volume.

Binance is no longer considered a “verified exchange” despite having lower wash trading volume compared to other exchanges. The report states:

“About 88-92% of daily trading volume is fabricated depending on the day. Bitcoin’s daily trading volume is about 92% fabricated, which is in line with the space as a whole when comparing our findings to top data sites reporting wash traded volumes […] Almost all of this fabricated volume comes from OKEx, Bibox, HitBTC, and Huobi.”

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