Most top exchanges are inflating their volume; wash trading

14 Dec, 2018
by Arthur Sillers
Most top exchanges are inflating their volume; wash trading

Research suggests that most crypto exchanges are engaging in a price manipulation, wash trading, and a number of bot strategies aimed at inflating volume numbers, according to the Blockchain Transparency Institute, which has been looking into this behavior for at least the last 3 months in increasing detail. The newest report indicates that the of the 'top 25 exchanges by volume,' only 2 do not distort their numbers.

The first two reports, which came out in August and November, respectively, found clear evidence of wash trading among a number of exchanges across a number of trading pairs. The newest research continues to probe deeper on the specific trading pairs which appear to be manipulated, and claims to have discovered a number of specific strategies which exchanges use to manipulate pricing and volume data in order to capitalize on the hype surrounding a coin, and in order to differentiate their exchange over a competing one.

According to the Institute, only Binance and Bitfinex appear to not engage in behavior which artificially increases apparent volume among the top 25 exchanges. These inflations are also massive, to the point that the top exchanges by volume in reality are quite different from those listed on Coinmarketcap. The Institute has calculated the actual top 10 exchanges by BTC volume, several of which are not in the top 25 at all according to Coinmarketcap and similar aggregators.

The problem isn’t Coinmarketcap’s, but of course the listing on their site motivate the behavior in the first place, as the publishing of competing volumes makes inflating exchange volume attractive in the first place. The news comes as a reminder that crypto is awash in fraudulent behavior, and the crypto community has not figured out how to police it. Whether crypto will be able to stamp out fraud and distortion in its market itself or whether regulation will try to reduce it from the top is still an open question.

Read more: AriseBank founders hit with ICO fraud charges and ordered to pay $2.7M in fines

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Read more about:ScamBinanceBitfinex


Can crypto clean up its exchanges itself?

(6 votes)

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Now we can see that Bitfinex is the exchange which is not connected with the wash trading. Based on this I think that BF is a good choice to start the trading without worrying about the assets security.
16 Dec, 2018 - 16:17
These reports show us again, that as Bitfinex as Binance is more reliable than other top crypto exchanges.
16 Dec, 2018 - 23:37
This statistic is impressive. I want to thank Bitfinex for the good and transparent work. Like it!
18 Dec, 2018 - 17:47
I think that after seeing this report on the wash trade it becomes clear that Bitfinex reputation is reliable.
20 Dec, 2018 - 19:45
Basically I always trusted Bitfinex and now I see that I was always right. good luck to Bitfinex.
20 Dec, 2018 - 20:38
It's just as with their trading volume. Binance and bitfinex are the top ones and the rest are just going to sink.
21 Dec, 2018 - 16:34
Again everyone sees the reliability of Bitfinex in accordance with the official information that gives us the grounds to trust its team.
23 Dec, 2018 - 23:41
Wouldn't go so far as to say that I completely agree or trust this report. But it seems that there's certainly a drop of truth in that report.
There were some news about Okex doing some dodgy stuff.
And I obviously do not believe that Huobi is so bad. It's nonsense. On the other hand, I'd say that Binance or Bitfinex can pretty much show their real volume. Because both are very well known and popular in many regions.
27 Dec, 2018 - 21:23
Well, the numbers are like OMG!

Good that Binance and Bitfinex don't do it.
31 Dec, 2018 - 14:14
the news is great. And that's awesome that Binance and Bitfinex don't wash trade. Respect !
11 Jan, 2019 - 17:57
two major exchanges: Bitfinex and Binance and not participating in this artificially increases volume

it is godsome man
31 Jan, 2019 - 11:05
hmmm at least two companies which are clean
07 Feb, 2019 - 17:17
among major exchange only bitfinex is able to keep on honest and fair business. other alternatives are doing some kind of hacks
15 Feb, 2019 - 06:54
i am not surprised to see among list of honest exchanges bitfinex. it has always been reliable place that cared about it's traders firstly
16 Feb, 2019 - 09:45
binance and bitfinex always seemed to me reliable and now after the report we now that they are doing fair business
09 Mar, 2019 - 09:17
even tough this report from BTI was published few months ago there a lot of new traders who choose these scam places like coinbase or poloniex...
22 Feb, 2019 - 09:24

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