Ninjastic
PostEdited versionsQuotes to this post
Post
Topic
Board Altcoin Discussion
Re: Don't Believe The Trading Volumes On Most Exchanges
by
South Park
on 22/12/2018, 16:48:49 UTC
Quote from: iconoclast on December 18, 2018, 02:51:01 PM
It would seem that "Wash Trading" is a much bigger problem than originally thought. Wash Trading is the buying and selling of coins by bots on the exchange to artificially create volume and the perception of liquidity. A new study shows that only 3 of the Top 25 exchanges trading Bitcoin according to CoinMarketCap are actually presenting true figures. https://cointelegraph.com/news/report-claims-over-80-percent-of-top-25-btc-trading-pair-volumes-on-cmc-are-wash-traded
This is been a known problem for a long time, people are going to choose naturally the exchanges that have the most volume, so exchanges have all the motivation to lie about the money that is moving through their system because they want to be the exchange that has the most volume so they can attract the most clients and to be honest I do not really see a solution to this problem.