New BTI Report: Global Crypto Exchanges Reduced Wash Trading Volume By Nearly 40%


A new report shows wash trading across cryptocurrency exchanges has reduced by over 35% since the start of 2019. The report further shows Bitcoin (BTC) wash trades are currently less than 50% of the total daily volume traded – representing a huge drop on the illegal practice.

Wash trading refers to a process where buy and sell orders are placed simultaneously on the price of the asset causing an ‘inflated’ volume on an exchange. Such a practice is illegal but remains common across exchanges that want to trick traders into thinking the volume traded on their platform is higher than it really is.

BTI Reports Wash Trading Volumes Reduce by Over 35%

A September 2019 report by Blockchain Transparency Institute (BTI), a crypto surveillance company, shows global wash trading on crypto exchanges reduced by 35.7% since January. The survey includes a total of 40 top crypto exchanges which represents over 90% of the total trading volume across global crypto exchanges.

Of the 40 exchanges included in BTI’s surveillance report Kraken, Poloniex, Coinbase and Upbit have the lowest cases of wash trading. On the flip side, OKEx and Bibox have the highest cases of wash trading with over three quarters of the volume traded washed.

“Not so Transparent”

OKEx team recently came out strongly alleging “a lack of fairness and transparency” in BTIs surveillance methods. As a crypto derivative platform, OKEx argues it should have different metrics to measure its wash trades as its clients’ (hedge funds and high frequency traders) do not use spot values in trades as retail clients do.

The exchange further brushes off the research methodology used by BTI claiming it is not transparent and

“does not provide data to back up claims.”

Monero, Dash and Ethereum Classic the Most Wash Traded

The BTI report further focuses on wash trades of individual cryptocurrencies across global exchanges whereby 45% of Bitcoin’s volume was wash traded during the year. Of a total of the 25 top cryptocurrency tokens, Binance, Maker DAO and UNUS LEO are ranked with the lowest volume of wash trades – below 25%.

On the opposite side of the spectrum, Monero (XMR) ranked as the most wash traded cryptocurrency with Ethereum Classic (ETC) and Dash (DASH) following closely – all with 80% or more in wash traded volumes.

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