OKEx Slams Wash Trading Accusations with “False” Report & “Highly Questionable” Methodology
Cryptocurrency exchange OKEx denies allegations of manipulation made by Blockchain Transparency Institute (BTI) in its latest report.
As we reported, as per the report, OKEx is one of the exchanges with high levels of wash trading ranging from 96.9% up to 99.7%. Also, OKEx — along with Bibox and Huobi — is behind most heavily wash traded cryptos, Ethereum Classic (ETC), Monero (XMR), and Dash.
Wash trading is a practice whereby trading volume is artificially inflated by placing buy and sell orders simultaneously on the same asset while giving the impression of more demand than it actually is.
Now, the exchange slammed the report, stating the allegations to be “not accurate and misleading.”
— Andy Cheung (OKEx) (@AndyC0125) September 23, 2019
Andy Cheung, Head of Operations at OKEx said a lot of exchange’s customers are professional trading firms, proprietary traders, and high-frequency trading firms, which is different from the retail-oriented exchange.
“Due to the complexity of derivative instruments trading, thousands of trades could be placed per day by a single user via collocated machines. Attempting to use retail-oriented parameters such as website/mobile traffic in any research is de-facto an apple-to-orange comparison,” the exchange said.
Because of its “unique market structure,” the research firm can’t measure everything with the “same ruler.” Cheung further accused BTI of not being “transparent” and using “highly questionable” methodology.”
The exchange said they have a trading surveillance system monitoring the trades on OKEx that reports of any suspicious market manipulation and “the users involved will have their accounts suspended or terminated immediately.”
To ensure that the market if “healthy,” the exchange is partnering with AML companies and constantly upgrading the KYC system, it wrote.