The issue of fake transaction volumes on cryptocurrency exchanges has been a widely documented topic in the world of digital assets. In a recent series of tweets, Larry Cermak, Director of Research at The Block, combined the latest Bitwise Invest report with the issue of fake volumes by using the analysis of exchange website visits. In his words,

“I found that up to 86% of the reported trading volume appears fake. In their study, Bitwise used screen scrapers to collect several months of live trading data from over 80 exchanges. Only 10 exchanges passed Bitwise’s tests – Binance, Bitfinex, Coinbase, Kraken, Bitstamp, bitFlyer, Gemini, itBit, Bittrex and Poloniex.”

Bitwise’s report was titled ‘Economic and Non-Economic trading in Bitcoin: Exploring the real spot market for the world’s first digital commodity.’ The report picked out specific exchanges such as OKEx, stating,

“While there may be a smattering of real bitcoin volume on OKEx, the charts are clear: the vast majority of bitcoin volume here is entirely fake.”

Cermak’s analysis claimed that Bitwise’s study did not focus on real volumes on the hundreds of exchanges which came under the scanner for manipulated volumes. He stated that after combing through several data clogs, it was revealed that there were nearly 800 million visits on cryptocurrency exchanges over the last six months.

Further analysis revealed that over the last six months, the reported volume was $1.96 trillion, out of which a minimum of $272.5 billion was real. Cermak added,

“At the very least, there is an increase of 10% in volume on top of the Bitwise-vetted exchanges if an estimate of real volume on all the other exchanges is included. About 65% of the total real volume came from Binance and Bitfinex, which both have virtually no oversight.”

The final figures were clocked after multiplying the minimum share of real volume by the self-reported volume figures. The analysis was conducted in a bid to show that the need of the hour for the cryptocurrency industry was having reliable data aggregators, so that exchanges do not have the power to flout norms and regulations.

The post Cryptocurrency research claims fake volumes on crypto-exchanges make up a majority of the trading volume appeared first on AMBCrypto.

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