Bitbns Crypto Exchange Gets BTC and XRP Trading Volume Manipulation Accusations
The Indian cryptocurrency exchange Bitbns has been accused of manipulating Bitcoin and XRP volumes on its platform. Bitbns is one of the most important cryptocurrency exchanges in India and in the region. According to a research performed by the crypto enthusiast Karthik Varma, Bitbns inflated Bitcoin and XRP trading volume between 500 and 668 per cent.
Since the beginning of the year, the cryptocurrency market has been in a bear trend that harmed the industry as a whole. Investors left the market, several Initial Coin Offerings (ICOs) got bankruptcy and several exchanges were hacked. In sum, it was not a good year for virtual currencies.
And this has clearly affected trading volume in the main cryptocurrency platforms in the market. This could be one of the reasons why Bitbns decided to artificially increase its trading volume numbers. In this way, it could be possible for the exchange to appear among the most important cryptocurrency exchanges according to CoinMarketCap.
During the year, the trade volume stabilized but it increased dramatically some time ago. This has clearly raised concerns and speculation about how it was possible for the firm to increase its trading volume substantially.
It is important to remember that Bitbns operates in India, where the government has taken several measures to control the market and ban trading activities. While other exchanges couldn’t continue with their operations, Bitbns could increase its volume.
Varma was able to deploy a system to record the trade history of all the BTC and XRP transactions on the platform. After using a detailed Node.js-MySQL program, the data was sorted according to four different parameters; serial number, time stamp, volume and price per unit. Another code was also added to ensure that the results provided were accurate.
After having the data and comparing it to the one provided by the exchange, Varma was able to discover that the exchange was literally inflating artificially the trade volume.
About it he mentioned:
“The recorded data showed the trade volume of XRP over the 24-hours interval as 62,365 and that of Bitcoin as 2.638. But on the Bitbns website, the trade volume for XRP was shown as 375,410 almost 500% more than the actual volume, and that of Bitcoin was shown as 20.266, almost 668% more than the actual traded volume.”
It is not possible to impose a sanction on the exchange since there are no regulatory bodies controlling the market. At the same time, other exchanges have also been questioned due to the high trading volumes registered.
As mentioned before, the cryptocurrency ecosystem in India has also been threatened by the government and different policies taken in order to control trading activities. These allegations clearly do not help the market and the cryptocurrency space at all. The regulatory agencies in the country could take even harder measures to avoid these issues again in the future.
Some days ago, the important and recognized Indian cryptocurrency exchange Zebpay, couldn’t deal with the different regulations imposed by the local authorities and had to halt its trading activities. Banks and other financial institutions were not offering support to crypto-related companies and users.
Bitbns offered users affected by Zebpay’s decision to halt operations to move their virtual currencies to their platform. At the same time, Bitbns decided to attract even more users by paying the fees to move the funds from Zebpay to Bitbns.
This is also quite important for the crypto space since the U.S. Securities and Exchange Commission (SEC) has not approved Bitcoin and crypto Exchange-Traded Funds (ETFs) since it claimed that the market was being manipulated and that was not mature enough.
If this turns out to be true, CoinMarketCap and other websites listing exchanges should definitely delist the platform, since it has been providing fake trading numbers. Additionally, if the crypto industry wants to attract institutional investors this is not the way to do it.