CryptoCompare Says Best Rated Bitcoin Exchanges Make Up Only 5% Of All Trading Volume
A new report has shown that untrusted crypto exchanges are still commanding the market. According to it, the top-rated exchanges (rated AA and A) hold only 5% of the volume. Most of it is held by exchanges with the second and third-worst ratings, E and D.
The study, which was made by Cryptocompare, shows that bad exchanges are still leading, however, they are not growing so much. When AA, A and B platforms are compared against the ones graded with C to F, they have grown 4.4% compared to 0.7% of the bad ones. It is still not enough.
Most untrusted exchanges, such as LBank, CoinBene and Coinsbit have reported very large trading volumes when compared to trusted ones. For instance, LBank has trades which are 15 times larger than Coinbase. Binance, however, which is rated very well, is leading among the good exchanges.
It is important to notice that the data is subject to manipulation because exchanges such as CoinBene are accused of wash trading. Since Bitwise Asset Management affirmed that 95% of all BTC trading volumes were fake, there has been a lot of discussion about this.
Unreliable platforms are common and make up for a large volume, which is why companies such as CoinMarketCap are pressuring these companies to disclose more accurate data about their sales. The site has recently affirmed that it would delist all non-compliant companies. Unfortunately, it seems that this is the way to go when there is so much manipulation in the market.