I've some concerns and queries, i observed that many altcoins even some major coins create fake volume, if a project is new and initially listed on a small exchange and create fake volume it's obvious understood that they're trying to get listed on coinmarketcap, but A coin which is existed in everywhere, even big exchanges but still they create fake volume on small exchanges, what this means? Why they do that? Is everything just done by exchanges or project itself, and also that makes a clear difference in prices as compared to official price of market that makes frustrated.
This is a purpose of small exchange, when they manipulate volume it will make a trade history in their exchange. If they make fake volume in new coin or small coin it won't attract many users, but if they make fake volume with popular coin it will attract many user to use their exchange and and trade thoose coin. Let say you want to use thoose exchange and want to start to trade popular coin, i guest you won't get any profit.
I saw some small exchange doing this, but when i start trade i got no profit and i realize that that's fake volume / fake order. When you meet exchange with this condition, withdraw your coin soon as possible and dont use it again
Yes, you will surely know if an exchange is doing the wash trading or faking the volume of a particular coin. If you are an experienced trader, you can easily spot those trends. And once you saw such performance, better get out and trade with more reputable exchanges. Better lose a lil bit of money rather than lose all your investments.