Mati Greenspan: Bitwise's report on fake trading volume isn't "a bad thing"

21 Apr, 2019 | Updated: 21 Apr, 2019
by Richard Allen
Opinion
Mati Greenspan: Bitwise's report on fake trading volume isn't a bad thing

Decentralization is without a doubt one of the core pillars of the cryptocurrency community, with both virtual assets and exchanges. A recent report, however, shines a light on manipulation within many exchanges being accused of faking trading volumes.

The Bitwise report suggested as much as 95% of trading volume os “fake and/or non-economic.” Mati Greenspan, senior market analyst at eToro suggests the report is a sign that the market is decentralized.

In an interview with AMBCrypto, Greenspan states that, in his opinion, the report wasn’t “a bad thing,” adding that the variance of 95% could just as easily have been 10% on the lower side or 99% on the higher side.

According to the report, just ten exchanges reported “real volume.” These exchanges are Binance, Bitfinex, Kraken, Bitstamp, Coinbase, bitFlyer, Gemini, itBit, Bittrex, and Poloniex

“The 95% isn’t as significant as the number of exchanges that are actually reporting true volumes, and are not doing wash trading. That number is 10, and that is a very good number.”

Greenspan explains that the exchange variance shows that Bitcoin trade dominance is spread out, suggesting the market is decentralized, especially when compared to the traditional stock market.

“This actually shows that the Bitcoin market is decentralized. In most markets you have one exchange, that’s basically the arbiter, that’s saying what the price is.”

He notes that, in other markets, having one dominant exchange provides the “price feed” for other exchanges. In the crypto market, however, there are ten exchanges that provide the same price feed.

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