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More than half of Bitcoin volume on crypto exchanges fake: report

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  • More than 51 percent of the total Bitcoin trading volume on various cryptocurrency exchanges this year is fake.
  • According to data from niche news publisher BanklessTimes.com, most of this fake Bitcoin volume is due to wash trading.
  • According to the report, falsifying trading volume could be a way for exchanges to attract new customers.

According to a new report, more than 51 percent of the total Bitcoin trading volume on various crypto exchanges this year is fake amid volatile global economic conditions.

Bitcoin is the blue chip of cryptocurrency and represents 40 percent of the total outstanding crypto assets in the new and volatile crypto markets. The market cap currently stands at 382.25 billion.

According to data from niche news publisher BanklessTimes.com, most of this fake Bitcoin volume is due to wash trading.

Wash trading is illegal, where an asset is bought and sold simultaneously on the same platform to create false liquidity. This is often done by bots or spoofing orders.

“It’s hard to talk about cryptocurrency without talking about Bitcoin, yet there is concern that much of Bitcoin’s daily traded volume is fake. This casts doubt on the legitimacy of exchanges and the reliability of data,” said Jonathan. merry. , CEO of Bankless Times.

Another factor contributing to the fake volume is stablecoins like Tether (USDT).A

Tether goes very well with Bitcoin and is often used to buy and sell Bitcoin on exchanges.

“This results in a lot of volume being generated without Bitcoin changing hands,” the report said.

According to the report, falsifying trading volume could be a way for exchanges to attract new customers.

By appearing more popular than they actually are, exchanges can trick investors into thinking there is more activity and liquidity on their platform.

Another reason people might engage in laundry business, according to the report, is to support the price of a particular asset.

By buying and selling the asset at the same time, they can create the illusion of demand and drive up the price. This can be done for personal gain or artificially inflating the price of an asset before it is sold.

“Investors should be wary of exchanges that report false numbers. You should do your research and only use exchanges you trust,” the report suggested.

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