Crypto Exchange Ranks (CER) has accused the BigONE crypto exchange of manipulating its trading volume stats to get higher up in the rankings. Towards the end of June, the exchange shot up to be the 3rd most popular by daily volume, in a matter of days.
Allegedly founded by legendary Chinese Bitcoin investor Li Xiaolai, BigONE was registered back in June of last year, and commenced trading on January 23, 2018.
The first five months of the exchange saw no more than 15 BTC trading volume in one day. Then, on June 22, this shot up to 401 BTC. The day after saw an even steeper rise, to 51,476 BTC, before this exponential growth eventually peaked at 126,013 BTC on June 23.
This unprecedented increase in trading volume (6,300,000% in just three days) led CER to investigate more specific details about BigONE's trading activity. Other exchanges such as BitForex have also aroused suspicion recently, due to similarly rapid rises in trading volume.
According to a blog post, the investigation "found many interesting things like recurrent patterns of trade volume for different pairs, inconsistencies between volume spikes and price moves, bots dominating in the trading activity along with declining users traffic, significantly higher than that of peers’ average trade size and volume per user metrics."
All these findings led the team to conclude that BigONE had probably been manipulating its statistics. This was likely a publicity ploy, as "driving up fake 24h trading volumes is a more effective marketing technique than the fair nurturing of the exchange’s user base, through wide media presence and community management."