Since Coinmarketcap added Liquidity to its indicators, you can see a lot of tokens with enormous daily volumes have no liquidity at all. Is it even worth to invest in this kind of tokens? Does that mean that most of the volumes are fake? Thanks for the answers.
In 90% of cases, the answer is yes. CMC only shows the analyzed data from the API of exchanges for specific pairs. If the exchange uses the trading bot which buys/sells and adds fake order to the order book, the average daily volume will be above the other listed exchanges. In order to avoid, the trader should do own research before thinking about the trading there.
yes because if they ask for transaction data manually it will be more difficult but can see the original transaction or only bot. in addition, the exchanges have their own systems and they are sure to maintain their data, for integration only uses the API