Stellar Lumens (XLM) Forum with for newcomers and contributor's rewarded Check here




Trust Only These Ten Cryptocurrency Exchanges, Warns Bitwise Asset Management
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5

#1
[Image: crypto-exchange-fake-data-678x381.png]
Reports of cryptocurrency Exchanges faking trading volume by wash trading have become rampant in the Financial market. What was once perceived to be something based on only suspicion and allegations is now coming out with documented proof.


[Image: bitwise.png]
Bitwise: Actual volume of trading is only $273 million

Recently, TIE had released a report of its independent analysis of discrepancies found in the reported trading volume of exchanges. Furthermore, according to TIE’s research 75% of the Exchanges reported fake trading volume data. However, according to the new report by Bitwise Asset Management, the actual percentage is 90%. Both of them used a different approach but seemed to have reached a similar conclusion.

List of ‘Trusted’ Cryptocurrency Exchanges According To Bitwise

The research parameter for Bitwise Asset Management was ‘trading volume’ data with respect to the amount of Bitcoins held in the exchanges. On comparing the data from several Exchanges, the report found authentic similarities in only ten Exchanges. They also found that nine out of the ten Exchanges have procured the required regulatory licenses. Binance Exchange was the exception out of the 10.

The other nine exchanges that reported authentic trading volume as per the report are BitFinexBitFlyerBitStampBittrexCoinbase ProGeminiitBitKraken, and Poloniex.

Quote:[Image: A9UWlqb6_bigger.jpg]
Bitwise@BitwiseInvest

 · 22h


Replying to @BitwiseInvest
13/ Here's another chart showing the tight pricing amongst these 10 exchanges. There is one global, unified price.

[Image: D2RT6ojXgAgEFwg?format=jpg&name=medium]

Quote:[Image: A9UWlqb6_bigger.jpg]
Bitwise@BitwiseInvest


14/ Other good news when you focus in on the exchanges with real volume: 9 of the 10 are regulated by FinCEN as Money Service Businesses and 5 of the 10 by NYDFS under the BitLicense. pic.twitter.com/uoTmpk8zFC

107
10:28 PM - Mar 22, 2019
Twitter Ads info and privacy

[Image: D2RUlg3WwAMjrs7?format=jpg&name=medium]


 What does it Mean for the Cryptocurrency Markets?

The total volume of trading is an independent factor that does not contribute to the ‘circulating supply’ nor the price. Hence, the total market capitalization is not directly affected by the reported trading volume. However, exaggerated reports of daily volume could affect market sentiments negatively.

The technique used to exaggerate the volume data of exchanges is ‘wash trading.’ By faking their data, the Exchanges are successfully able to climb the rankings on Exchange list according to trading volume. Furthermore, the rankings earn them customers and a heavy coin listing fees as well.

The fake reported data on Exchanges is also a factor behind SEC’sreluctance to pass an ETF based on Bitcoin or altcoins. The regulatory bodies around the world will most likely crack down on the exchanges and weed out the fake data. Nevertheless, the road towards progress is steady and comparable to the current traditional asset like ‘Leveraged ETF.’

Quote:[Image: A9UWlqb6_bigger.jpg]
Bitwise@BitwiseInvest

 · 22h


Replying to @BitwiseInvest
19/ You can read more about our filing or the report at the links above.

To summarize: The bitcoin market is smaller, but more efficient and regulated, than reported, mitigating concerns around market manipulation.

Quote:[Image: A9UWlqb6_bigger.jpg]
Bitwise@BitwiseInvest


20/ We hugely appreciate the SEC being careful with their review of bitcoin ETFs & digging into the detail. Leveraged ETFs took 6 years for approval. Actively managed ETFs nearly 6 years as well. The 5+ year bitcoin journey is not atypical. It's necessary for investor protection.

150
10:28 PM - Mar 22, 2019
Twitter Ads info and privacy

What are your views on reported fake volumes data? If it’s true, what steps must the crypto-community take? 


by Nivesh Rustgi
Reply


Possibly Related Threads...
Thread Author Replies Views Last Post
  How Cryptocurrency is Helping the Cannabis Industry crytocure 0 15 Yesterday, 03:27 PM
Last Post: crytocure
  New Study Reveals Countries With Most Registered Crypto Exchanges crytocure 0 20 15-09-2019, 03:35 PM
Last Post: crytocure
  How to Open a Cryptocurrency Exchange for Only $140 Per Month? crytocure 0 29 14-09-2019, 03:06 AM
Last Post: crytocure
  Can You Make Profits Mining Cryptocurrency? crytocure 0 31 10-09-2019, 03:37 PM
Last Post: crytocure
  Impact of cryptocurrency on economy: How Crypto Is Disrupting the Financial Sector crytocure 0 37 08-09-2019, 11:09 AM
Last Post: crytocure
  Cryptocurrency Mining: Are ASICs Causing Centralization? crytocure 0 41 06-09-2019, 12:48 AM
Last Post: crytocure
  How to verify cryptocurrency transactions? crytocure 0 46 05-09-2019, 02:02 PM
Last Post: crytocure
  Top 3 Cryptocurrency Trading tools for Beginners crytocure 0 51 03-09-2019, 02:37 PM
Last Post: crytocure
  Why Lumi Wallet Is 2019 Top Cryptocurrency Wallet crytocure 0 61 01-09-2019, 01:39 AM
Last Post: crytocure
  How and why the global centre of cryptocurrency moved back to Asia crytocure 0 67 29-08-2019, 01:03 PM
Last Post: crytocure



Users browsing this thread: 1 Guest(s)