Blockchain Transparency Institute: Top 100 Exchanges are Faking $6 Billion in Daily Trade Volumes


According to a new report, big exchanges could be faking over 70% of their total trading volume.  Get this; almost 2/3 of the 24 hour volume being reported by top 100 exchanges in the cryptocurrency space could be doctored.

Coinmarketcap (CMC) was called out a couple of months ago for feeding people bloated 24 hr volume figures. Consequently, the site has been quiet over the last month and has in a way revised how it reports these figures.  Actually, the site has a new volume metric which has brought severe changes to rankings. However, crypto enthusiasts still smell a rat despite the adjustments made on the site.

Recent Research

This week the Blockchain Transparency Institute (BTI) released research to show the overwhelming doctoring of trade volumes being reported.  The research that looked at top 130 crypto exchanges found out that over $6 billion was being faked. Such an amount comprises almost two thirds of the volume traded each day.

The worst hit by this scandalous behavior is BCEX that is said to fake over 22,000 times of its actual trading volume. Others include B-box with 85 times, Bit-Z with over 269 times and LBank with 4400 times.

Further on, Binance sits at the top in terms of exchange listing and has data to back up that the huge number of unique users of its platform.  Coming second is Bitfinex synonymous for its high end clientele and its minimum entry deposit of ten thousand dollars.

Gainers & Losers

Some of the exchanges that have moved remarkably in this shakedown of rankings by CMC are Kucoin and Cryptopia who have moved to number 19 and 24 from 58 and 90 respectively.  Most of the exchanges that were in the top 25 have moved out of the top 100 list.  The report shows that some of the sites have about 1000 visitors each day.

In terms of slippage, exchanges such as Coinbase, Kucoin, Binance, Bittrex, Poloinex and Kraken seem to report very low numbers. Coinbase is said to be building a system designed to flag any suspicious trading activity.

As disturbing as this report might be, it’s important to bring such unscrupulous activities to light especially as institutional investors gear up to venture into the crypto space.  These exchanges are continuously working to show the SEC that they are keen to ensure that their platforms are free from any sort of manipulation.

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