Bithumb Exchange Exchange Adamantly Denies Fake Trading Volumes From CER’s Ratings Report
Bithumb Has ‘Not Faked’ Its Trade Volume Says Company Representative
To further elaborate on the matter, exchange ratings and analytics service provider CER has recently stated that almost 94% of Bithumb’s daily trade volume is false/ manipulated. However, as soon as the allegations were put forth, an executive from Bithumb spoke with Forbes to present his company’s side of the story.
“Bithumb is doing nothing to inflate trade volume. Bithumb is not selling mining-based coin. Bithumb is trying to get more customers by providing various promotions just like any other company in the world as a normal business.”
What Is The CER Saying?
According to CER, Bithumb’s daily trade volume up until September lay around the $350 Million mark. However, by November 11, Bithumb’s daily trade volume surged by a whopping 1200%, thereby making it the second largest crypto exchange in the world (with a reported trade volume of $1.56 billion per day).
To further its point, the CER said that Bithumb was making use of a tactic called “wash trading” in order to bulk up/ inflate its trade volume. For those unaware of what ‘wash trading’ is, it is essentially a way in which investors can manipulate the market by simultaneously selling and buying the same financial instruments to cause fake and misleading activity.
In relation to the matter, Gleb Myrko, an executive for CER, was recently quoted as saying:
“Judging from our multifaceted investigation on Bithumb charts we see the signs of trade volumes manipulations, specifically, wash trading. Having calculated Price-Volume Correlation we came to conclusion that the trade volume performance is not linked to price fluctuation on the exchange.”
More On The Matter
In addition to the aforementioned factors, Myrko also noted that bithumb had recently been experiencing “strange activity spikes” all through October and November. To be even more specific, these sudden surges were responsible for almost 95 percent of Bithumb’s total trade volume over the past 2-3 months.
Rounding off this article, it is also worth mentioning that a recently released report by CER states that:
“Bithumb has mastered a multi-factored approach to conceal its foul play. As far as we are able to judge the manipulations were fulfilled via matching opposite orders with the same price or by simply drawing transactions out of thin air, so-called ‘painting the tape.“
Last but not least, many of our readers may also recall that earlier in June, Bithumb was hacked by miscreants who made their way with more than $30 million worth of altcoins. However, within four months of this incident, the exchange was able recover nearly $14 million of its stolen digital assets.