Christine Vasileva Sep 30, Recent research conducted by the Blockchain Transparency Institute has identified some alarming figures regarding the amount of wash trading that takes place among the leading cryptocurrencies. The 4th biggest cryptocurrency by market cap and largest stablecoin by volume, Tether USDT , was found to be one of the most wash traded assets in the list. The latest BTI report on wash trading involves 40 hand-picked exchanges that are cooperating with data sharing.
BTI noted that in , wash trading actually decreased by According to our data, the cleanest exchanges over this time continue to be Kraken, Poloniex, Coinbase and Upbit. On the other side, OKEx and Bibox lead the exchanges with the highest percentage of wash trading in our real ranking of the Top But there are worse offenders — For some small and illiquid coins, wash trading is prevalent.
Wash trading is the practice of selling and buying back tokens to artificially create high trading volumes. Some crypto exchanges do this routinely in order to fake the amount of activity on their platform and attract new customers. Recently, OKEx denied to have wash trading on its platform, or faked volumes. The growth of BTC prices in the past two years coincides with increased Tether minting. The leading stablecoin went from a small-scale asset with a few million coins, to the most actively traded coin.
Now, USDT bot trading could be organized on multiple niche exchanges, as well as unlisted trading operations. USDT cannot be cashed out directly, and is often exchanged for other stablecoins that have the right legal apparatus to pay out in fiat. Share your thoughts in the comments section below! Could you be next big winner? I consent to my submitted data being collected and stored. But its massive supply and a number of other factors will continue to be at the root of its struggles as we enter a Crypto exchange giant Binance is currently looking to expand its token trading pair listings for its US platform by as many as 18 new cryptocurrencies.
In the same report, Gate. Wash trading, which describes the act of simultaneously buying and selling an asset in order to falsely drive up trading volume, remains a major problem in the cryptocurrency industry. The findings were even more serious than the report that Bitwise delivered to the SEC, which claimed that 95 percent of Bitcoin trading volume is fake. As a result of the findings, CoinMarketCap has announced that it will be revamping the metrics it uses to measure and report trading volume. Alon Karniel, COO of algorithmic crypto trading company Algoz, explained in an interview t o Finance Magnates last month that some exchanges employ wash trading methods in order to make themselves more attractive to new projects who may be willing to pay higher listing fees. Cryptocurrencies themselves or malicious traders who are seeking to pump up the value of an asset may also employ wash trading in order to cause unwitting investors to buy them up, driving up the price for a pump-and-dump scheme.
A new study from the Blockchain Transparency Institute BTI has shown that even large crypto exchanges like Binance are not safe from wash trading practices, unlike as previously claimed by earlier studies. Wash trading is a term given to a form of fabricated trading to create false of inflated trading volumes at crypto exchanges so as to affect their standings on exchange rankings, which typically use trading volumes to indicate popularity.
It involves the creation of two accounts, set up to buy and sell crypto to each. Binance CEO Changpeng Zhao has, in the past, accused other exchanges of manipulating their volume statistics to give other traders bitcoin transparency institute wash trading impression they have more liquidity and are more used than they really are.
This all stemmed from an even earlier study by crypto trader Sylvain Ribes who traded crypto at several exchanges to see the effects of his own trades on their volume data. Follow BitcoinNews. Telegram Alerts from BitcoinNews. Want to advertise or get published on BitcoinNews. Ethereum Price and Technical Market Analysis Trending News. The global targe…. Latest Sponsored Stories. Submit Sponsored Story. Follow us. Welcome to BitcoinNews. Find out. I agree.
Three-Month Surveillance Effort Reveals Fraud Through Wash Trading
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