OKEx exec: "There is a lot of suspicious trade activity on OKEx"

28 Mar, 2019 | Updated: 28 Mar, 2019
by Richard Allen
News
OKEx exec: There is a lot of suspicious trade activity on OKEx

A recent report by Bitwise revealed that major cryptocurrency exchange OKEx has a chronic issue with wash trading. A senior executive at the exchange has come forward admitting to Crypto briefing that the exchange has a serious issue with artificially inflated volumes.

A report released by Bitwise Asset Management on March 19 suggested that just 10 cryptocurrency exchanges have actual trading volume. The report states that the total reported trading volume is around $6 billion, but the actual figure is closer to $273 million. Just 4.5% of the reported number.

Read more: Bitwise report makes claim: "Only 10 exchanges have actual volume"

Now, in response to the report, Director of Financial Markets for OKEx, Lennix Lai has come forward. When asked about the allegations that OKEx had been engaging in wash trading, the director stated: “We would acknowledge that.”

He elaborated, saying this was “market-driven behavior” based on the unique fee structure used by the exchange. He said many customers are trying to “trade smart” by finding loopholes in their fee structure.

OKEx makes use of an eight-tier fee structure, charging lower transaction fees to accounts which often trade on the exchange’s spot and futures markets.

However, the executive stated, “I would say there is a lot of suspicious trade activity on OKEx,” explained Lai. “And we’re working on a lot of measures to prevent that stuff.”

Recently, OKEx announced a partnership with US-based trust company Prime Trust to launch a dollar-backed, compliant stablecoin.

Read more: OK Coin announce partnership with Prime Trust to launch OKUSD stable coin

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