Changpeng Zhao Comments About Fake Volumes In The Cryptocurrency Market
Changpeng Zhao, the CEO of one of the largest cryptocurrency exchanges in the market, Binance, commented about the fake volumes that other exchanges registered. During the last few weeks, there have been several debates regarding the volume that exchanges are registering.
CZ Complains About Fake Volumes On Exchanges
Binance has always been one of the best performing exchanges in the last months. Since it was launched back in 2017, the exchange attracted a large number of users and started offering a large number of trading pairs.
On Twitter, Changpeng Zhao has released an image in which it is possible to see Binance as the 8th largest cryptocurrency exchange in terms of trading volume. He mentioned that things are “getting a little out of hand.” He then mentioned that credibility is the most important asset for any exchange.
This is getting a little out of hand. The exchanges above fail to realize:
CREDIBILITY is the most important asset for any exchange!
If an exchange fakes their volumes, would you trust them with your funds? pic.twitter.com/LAizwYAJoC
— CZ Binance (@cz_binance) April 6, 2019
At the time of writing, the crypto exchange OOOBTC is the one with the largest trading volume in all the market with $1.5 billion, according to CoinMarketCap. HitBTC and DigiFinex are the next two exchanges with $1.32 billion and $1.2 billion.
According to a recent report released by Bitwise, 95% of the exchanges in CoinMarketCap have faked volumes. There are several unregulated and small exchanges that have been growing in the last few months, which raised concerns among the crypto community on whether these platforms are reporting real trading volumes or not.
DonAlt, one of the most popular traders on Twitter, answered Changpeng Zhao back, saying that Binance started in the same way as these exchanges with washed volume. However, DonAlt said that he loves what Binance does in some areas, even when he criticizes it in others.
Not like you started out the exact same way huh?
And still do it either yourself or don't do anything about it on some pairs on your exchange.
Love what Binance does in some areas but if you're sitting in a glass house better not throw rocks.
— DonAlt (@CryptoDonAlt) April 6, 2019
At the same time, CoinMarketCap informed that they know that there is a problem with exchanges and that they will be trying to enhance their platform in order to provide better data to users in the space.
Carolyne Chan, global head of marketing at CoinMarketCap, commented that they will be also adding liquidity measures, hot and cold wallet balances and traffic data for listed exchanges. Users will be able to understand whether the trading volume registered by exchanges is real or just faked.
At the time of writing, Binance has a trading volume of $932 million and it is the 11th largest digital exchange in terms of trading volume.