Cryptocurrency Exchange Volumes May Allegedly Be Full of Fake Activity, but Bitcoin’s Value Is Not


Bitwise Asset Management recently presented to the U.S. Securities and Exchange Commission in an effort to gain approval for its proposed rule change which would allow it to launch a BTC ETF. The detailed report related to the presentation provided some alarming allegations on bitcoin exchange trading volumes. Specifically, the report stated:

“Despite its widespread use, the CoinMarketCap.com data is wrong. It includes a large amount of fake and or non-economic trading volume, thereby giving a fundamentally mistaken impression of the true size and nature of the bitcoin market.”

It is interesting that Bitwise would choose to highlight this bit of information in its presentation. The point does support Bitwise’s argument though, which may be that by eliminating financial intermediaries necessary to execute trades in the traditional financial system, the technology may be able to promote for participants more efficiency and market participation.

There are those who have praised Bitwise for coming under the SEC’s scrutiny during its ETF proposal process, and for issuing the detailed report – even though it shares information that others do not want to recognize. For example, Jeremy Allaire, CEO, and co-founder of Circle stated

“Great work from @BitwiseInvest helping the market understand what’s real and what’s fake. If we want crypto capital markets to go mainstream we need data investors can believe in.”

Allaire has a point – the SEC’s goal is to create a safe and regulated environment for all types of investors and Bitwise has helped further that goal by being open and transparent.

https://bitcoinexchangeguide.com/leading-crypto-market-assets-surge-bitcoin-btc-ethereum-eth-xrp-ripple-and-bch-coin-price-analysis/

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide