New Blockchain Transparency Institute (BTI) Report: All But 2 of Top 25 Exchange’s Volume are Accurate

Report: BTI Reveals Inaccurate Trading Volume Recording Among the Top 25 Crypto Exchanges

The Blockchain Transparency Institute has recently unraveled its annual “Exchange Volumes Report” this December 2018. The report by BTI finds only two crypto exchanges, out of the top 25, accurately report their trading volumes. The apparent flaw sees cryptocurrency exchanges say exaggerated volume figures that are entirely different from the amount reported by CoinMarketCap.

The report further assets the long-term belief of wash trading among the exchanges. The estimates indicate that the vice comprises 99 percent of the volume within 12 of the top 25 cryptocurrency pairings reported in the market.

The findings

According to BTI's research, only two large exchanges by trade volume do not distort their trading volume through wash-trading. The malpractice involves market manipulation by investors creating simultaneous trades to develop artificial and misleading activity in the marketplace.

BTI found Binance and Bitfinex, as the only exchanges with no apparent manipulation of the trade volumes. CoinMarketCap ranks Binance as the third-largest platform by 24-hour volume, with the Bitfinex exchange at 21st place.

Also, BTI's report ranks Upbit as the third largest exchange according to volume. Surprisingly, CoinMarketCap ranks the trading platform as 39th on its list of platforms. The Upbit platform is succeeded by Kraken (27TH), Bitstamp (41st), Bitflyer (54th), Poloniex (62nd), Bittrex (50th), and (55th). The Okex platform was also found to be engaging in wash trading in “just about all of its top 30 tokens on offer. By estimates, BTI concludes that only one of the top 20 exchanges by reported volume should be in the top 10.

Wash-trading galore

BTI'S Volume ranking report also analyzes the purported volume of the top 25 cryptocurrency pairing with findings indicating Binance and Bitfinex as showing their legit trade volumes. Further insights by BTI estimate that 80 percent of the reported amount among the top 25b cryptocurrency pairings comprises of wash-trading. Among the pairings, BTI found 99 percent of the trading activity for 12 pairings was through wash-trading. The Coinbene BTC/USDT pair, Digifinex's BTC/USDT, Oex's ETH/BTC pair and Coinbit's BTC/KRW pairing were just some of the trading pairs found with traces of wash-trading.

The BTI estimates also indicate that only one percent of trade volume within top 25 pairings hosted on Ooobtc, Rightbtc, Coinsbank Dobi trade, Simex, Bcex and Coinzest as actually valid data.

Adjusted rankings

BTI's research concludes that Binance's BTC/USDT pairing as perhaps the most traded cryptocurrency pair, despite its Coinmarketcap ranking. Bitfinex fourth-ranked BTC/UUSD pair ranks as the second largest by volume with Coinbase's BTC/USD pair following. Bitflyer's 42nd ranked BTC/JPY pair and Kraken's 47th ranked BTC/USD pair make up the last of the top five-ranked pairing by the adjusted volume.

Overall, BTI's Exchange Volume report reveals a quite disturbing trend among token models and manipulative crypto trading exchanges. The BTI firm warns token projects of the visible role they are playing in paying exchanges to engage in wash trading. The argument is that the tactic is becoming a cash-cow for exchanges looking to entice cryptocurrency projects into paying their exorbitant fees for listing.

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