Tanya Abrosimova
Independent Analyst
- Bitwise prepared extensive research on cryptocurrency exchanges.
- The vast majority of trading platforms overstate their statistical data.
Bitwise Asset Management filed a report with the US Securities and Exchange Commission (SEC). The company researched 83 cryptocurrency exchanges, analyzed their trading volumes, the correlation between CME Bitcoin futures and spot prices as well as the share of arbitrage.
"It's a 104-page white paper expanding on our March 2019 presentation. It examines 83 exchanges for fake volume, the tight relationship of CME futures & spot, and rapid arbitrage," the company announced in its Twitter account.
Thus, the experts noted that in reality, the Bitcoin spot market is much smaller than expected, more regulated and more efficient. Moreover, the state of the market has improved significantly since the beginning of 2018.
Earlier this year Bitwise said that 95% of all trading volumes on unregulated exchanges are fake and deprived of any economic sense.
Only 10 out of 83 cryptocurrency exchanges passed Bitwise test. Basically, it means that only these platforms - Binance, Bitfinex, Coinbase, Kraken, Bitstamp, bitFlyer, Gemini, itBit, Bittrex and Poloniex - do not overstate their trading volumes.
It is worth noting that the research did not cover the South Korean cryptocurrency exchanges. The company explained it by the fact that the trading volumes of those platforms stand out from the rest.
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