Research suggests fake volume on crypto exchanges isn't as bad as reported

03 Jul, 2019
by Richard Allen
Research suggests fake volume on crypto exchanges isn't as bad as reported

Alameda Research has released its latest report which suggests that fake cryptocurrency exchange volume isn’t as bad as previously thought.

A report from Bitwise Asset Management released in March ago suggested that as much as 90% of recorded crypto trading volume is fake. However, as per Alameda’s research, that number is likely closer to 68%.

While neither results are particularly promising, Bitwise’s report did result in action being taken to try and remedy the situation, like CoinMarketCap’s development of more transparent tools and metrics for example.

Researchers developed six criteria which they applied to 48 cryptocurrency exchanges including major ones like OKEx, Huobi and Binance and lesser-known ones like CoinTiger and Kryptono.  Each criterion applied to an exchange was ranked as either a pass, fail or undetermined. Ultimately, a score between 0 and 5 was assigned, with 5 representing an exchange that reports accurate volume.

The results are as follows:

Source: Alameda Research

Bitwise’s report concluded that just ten exchanges reported accurate trading volume, with those exchanges being Binance, Bitfinex, bitFlyer, Bitstamp, Bittrex, Coinbase Pro, Gemini, itBit, Kraken, and Poloniex. Alameda’s results agree with those findings but suggest that Bitwise’s report may have been too harsh.

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