Blockchain analysis firm, Chainalysis’ recent study concluded that a small number of crypto exchanges continue to report falsified trading volumes reports Coin Telegraph. An example of this is BitForex, which will be later expounded upon. That said, major exchanges to date, including the likes of Binance, Bitfinex, Kraken, Bitstamp, Coinbase, BitFlyer, Gemini, itBit, Bittrex, and Poloniex, are said to be accurate with their figures.
By using the data reported by the aforementioned ten exchanges (commonly referred to as the Bitwise 10), Chainalysis compared them to other existing exchanges by establishing a ratio between trade volume and on-chain volume received over the course of time. Here’s what was shared as per the official blogpost:
“Over the course of nearly two years, the ratio averages out to roughly 6:1. That means that the Bitwise 10 see roughly 6 bitcoins in trade volume for every 1 bitcoin received on-chain. Any exchange with a substantially higher ratio may be overreporting its trade volume.”
Bearing this in mind comes BitForex, who supposedly disclosed overstated trade volumes. To be more specific, it was found that BitForex’s reported ratio was 40,000:1. In Layman’s Terms, BitForex reports 40,000 BTC worth of trade volume for every single BTC that enters the exchange, compared to Bitwise 10’s 6 to 1!
BitForex wasn’t the only one to have been caught red-handed, as it was only one of 12 others to have falsely reported their numbers. The remainder includes: Bit2c.co.il, Bitbank.com, Bithumb.com, Bitso.com, CoinCheck.jp, Coinfloor.co.uk, CoinOne.co.kr, Huobi.com, Korbit.co.kr, OKCoin.com, Upbit.com and Zaif.jp.
Chainalysis Lays Off 20% of Its Staff
Another headline currently making waves is that of the analysis firm’s decision to cut down on its workforce, reports The Block. As per Chainalysis’ Director of Communications, Maddie Kennedy, 39 employees have been laid off, with the staff totaling 155.
Sharing with the news outlet, CoinDesk, Kennedy disclosed that the decision to do so stemmed from the fact that the firm is working towards “the path to profitability.” The firm plans to direct their attention towards developing its current products, so it seems like the cuts took place within the R&D team. Interestingly, this appears to have happened after a recent hire of three new executives!