Post
Topic
Board Bitcoin Discussion
Topic OP
Is Bitcoin truly free of Pump and Dump Schemes?
by
Faisal2202
on 23/03/2023, 15:01:14 UTC
I was searching about wash trading and how it could impact the crypto market, those who have no or less idea what is wash trading, it's manual or automatic (high-frequency bot trading) making trades of tokens to increase its trading volume to create big candles (increment in the price of that token).

I had a firm belief in BTC that it could not be used in the Pumps and Dumps Scheme because of its scarcity (limited supply, high demand) and decentralization. I posted a topic about Don’t Fall Prey to these Market Sentiments and Save your Bitcoin in which i covered 4 major market sentiments. One of them was the Pumps and Dumps Scheme, but "this market sentiment has no impact on BTC price". That's what i learned in that topic by reading members' replies.

So i can conclude, most of us think of BTC as P&D-free. But i think that's not true when i read a report more-than-half-of-all-bitcoin-trades-are-fake by Forbes.

They manually calculated the trading volume of BTC and compared it with BTC's trading volume of CMC, Coingecko, and other exchanges. These are some key points to their results of the report

Quote
1. Forbes estimates the global daily bitcoin volume for the industry was $128 billion on June 14. That is 51% less than the $262 billion one would get by taking the sum of self-reported volume from multiple sources.
2. In terms of how much bitcoin activity takes place at these firms, 21 crypto exchanges generate $1 billion or more in daily trading activity, while the next 33 exchanges had volume between $200 million and $999 million across all contract types, spot, futures and perpetuals.
3. Altogether, the lesser regulated exchanges in our study account for approximately $89 billion of the true volume (they claim $217 billion).
4. In the Western world and particularly in the U.S., it is tempting to think of bitcoin only trading against either the U.S. dollar or the euro and British pound. But some of the largest trading pair activity occurs against fiat currencies like the Japanese yen and Korean won and against major stablecoins like Binance U.S. dollar and the USD coin.
Source

Now i am wondering is it true? like really BTC is involved in P&D schemes because Wash trading is another term for P&D schemes and both have the same purpose to manipulate the BTC trading volume to control its price for their own benefit.