A cryptocurrency analyst reckons: Cryptocurrency exchanges faking trading volumes
|- “A bit of wash trading and artificial volume inflation is to be expected in a thoroughly unregulated market,” said Ribe.
- OKex cryptocurrency exchange is faking up to 90% of its trading volumes.
A cryptocurrency analyst has come out to dispute the trading volumes reported by cryptocurrency exchange platforms. The analyst reckons that close to 20%, in other words, $3 billion trading volumes are nothing but fake publicity. Some cryptocurrency exchanges are in fact selling to themselves to inflated the volumes.
The analyst, Sylvain Ribes through an article said that a Chinese exchange platform OKex has been faking almost 90% of its trading volume. “A bit of wash trading and artificial volume inflation is to be expected in a thoroughly unregulated market,” said Ribe.
In his research, he found out that the trend is widespread among the exchanges from China. Some small exchanges even reporting higher trading volumes compared to bigger exchanges like Bitfinex. He added, "But it's the day and night cycle in China! I do not believe it speaks highly of OKex engineers that they actually reflected upon ways to make wash trading less conspicuous than a straight constant stream of trades, but all they could come up with was a perfect sine wave,"
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.