Over the years the crypto market has gained severe popularity among investors. With the promised returns from the new coins getting into the market has got all investors intrigued. As a result, there could be some cooked figures taking place.
So we believe that about $3 billion of the crypto assets that are present could be fabricated, and Okex, which is among the number one exchangers that have been rated by volume, could be the main offender of this. This could be up to 93% of the volume that is being presented being nonexistence, something interesting that you should find out, so read on as we explore this and much more.
What is the Current Situation With Okex?
With various data gathered it is clear that most of the volume in Okex’s could be doctored.
Just to ensure this is accurate data was gathered from different exchanges, that is GDAX, Bitfinex, Bistamp, Poloniex, Kraken, and Gemini. After thorough research being carried out, with various aggressions applied to the investigation it was found that about 92.9% of Okex’s volume could be fabricated.
As this is not an easy subject to speculate various measures were put in place to ensure fairness in the research. The list of exchangers shared are trustworthy as they that have been behaving consistently on the market.
A regression was adequately performed on the combined data sets; this was helping in predicting the trading pair volume that is present in the observed spillage. Then a comparison was made to the Okex claimed volumes against the volume numbers that were estimated by the model.
Also the Chinese Armada Rip-Offs
Okex is not the only offender to falsifying volumes, a sad truth that we need to come to terms with.
If you are a frequent visitor of the CoinMarketCap, you might have noticed that the platform has recently listed a number of Chinese trading exchanges that also boast some rather high volumes. And the most interesting part is most individuals have never had about them. It is clear that most of these exchanges are using the same trading engine and User Interface.
Some of these exchanges include Exx, Lbank, CoinEgg, RightBTC, CoinEx, BiBOX, BTC-Aplha, just to name a few. It is clear that these platforms are faking their volumes, for sure they don’t deserve to be around to run those numbers.
It is starting to be a worrying trend that LiveCoinWatch and CoinMarketCap are listing this kind of exchangers on their platforms alongside the legit and struggling platforms that are truly out to help investors with proper decision making in the crypto market.
So Why Should You Care About This?
Some may argue since the crypto market is not regulated, then probably it is not legal, to begin with, but this is wrong. Since the market is actually not governed as stated, then the responsibility behooves the participants in this same said market. The least we could actually do as interested parties of the market is boycott these exchanges presenting fake volumes and those that are endorsing these practices.
Another argument that might arise is, these exchanges might not be hurting anyone, but one would be wrong in such a statement. When the volumes have been inflated in that manner, then they are positioning themselves to defraud the hungry investors trying to make some extra cash. We are not saying only the beginner investors can be defrauded, even the experienced as these volumes tend to affect the valuation of the cryptocurrencies.
Therefore, let us all be keen about this and protect our hard earned cash. And remember before you make any investment it is crucial that you do intensive research.