The volume of false transactions on leading digital trading platforms has decreased by 35.7% since the beginning of the year. Nevertheless, the platforms continue to display fake trading volumes, Blockchain Transparency Institute (BTI) report says.
According to researchers, Kraken, Poloniex, Coinbase, and Upbit turned out to be the most transparent digital currency trading platforms. The leaders in fake trading volumes are OKEx and Bibox – false data on these platforms account for 75%. Nevertheless, the true figures still allow them to be in the TOP-20 platforms.
Commenting on analysts’ data, Andy Cheung, Head of Operations at OKEx, says that his company does not falsify operational data. He states on his Twitter the BTI report is false.
— Andy Cheung (OKEx) (@AndyC0125) September 23, 2019
The USA and Japan trading platforms are highly transparent, which may be due to severe governing rules in these countries. However, this factor does not always ensure the transparency.
“South Korea also has a closely monitored regulatory system, but a closer look at Bithumb is not being taken by authorities, as our data shows they have been heavily wash-trading Dash and Monero for the entire year. We have these tokens being wash traded over 90% of their volume,” the report says.
Researchers also analyzed data on other major digital trading platforms (Gemini, Binance, Bitflyer, etc). Their fake trading volumes have declined and are now at relatively low values (below 10%). BTI notes that many cryptocurrency exchanges have introduced more effective solutions for identifying and closing accounts seen in false trading.
The major analytical service, CoinMarketCap, keeps including “fraudulent crypto exchanges” in the TOP-10 of its rating according to adjusted trading volume.
According to the CoinMarketCap version, most of the digital trading platforms colour the facts of activity. BTC trading is falsified by 50%, and Ethereum – by 75%. Transactions with ETC, XMR and Dash are fictitious in 80% of cases. Recall that this year many researchers published other reports on this theme.
CoinMarketCap Struggles With Fake Crypto Activity
CoinMarketCap confirmed that the large part of trading services falsified their data. To intercept the analytical source, in order to accumulate certain data on assets. Earlier in September, CoinMarketCap announced the new cryptocurrency rating system.
Now, CoinMarketCap will track traffic from cryptocurrency exchange websites, cold and hot wallets balances, as well as liquidity indicators. Thus, users will be able to evaluate the ratio of trading volumes and actual liquidity by themselves and draw their own conclusions.
In turn, DATA will develop reporting standards for cryptocurrency exchanges, as well as monitor their compliance.
Also, all companies displayed on the analytical source are obliged to present trading data, as well as books of market orders in real-time through the API.