Is 87 percent of crypto trading volume fake?

18 Mar, 2019 | Updated: 18 Mar, 2019
by David Robb
Analysis
Is 87 percent of crypto trading volume fake?

A recent analysis carried out by crypto trading data platform The TIE has cast serious doubt on reported volumes on exchanges. As much as 87 percent of total volume may be faked, amounting to over $13 billion.

The report took figures from the top 100 online crypto exchanges by trading volumes. It compared the number of visits to a particular site in a month with the amount of crypto usually traded, finding some major differences between the leading trading platforms and some of the smaller ones further down the list.

Read more: Bitcoin volume is getting close to levels not seen since April of 2018

Taking the numbers of monthly visitors and trading volume averages allowed the team to work out roughly what exchanges' trading volumes would be expected to be, and this was plotted on a chart with the reported figures. There were some major outliers, and around 59 percent of volumes were over 10 times what they were expected to be. 

75 percent of the exchanges analyzed had some suspicious trading volume, and a total of 87 percent of the overall trading volume seemed potentially fake. The difference between the trading volume that the analysis predicted and what was actually reported was around $13.8 billion.

Read more: Traders & analysts: Can Bitcoin go beyond $4k?Could Binance push Ethereum into extinction?

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