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most bitcoin trading faked by unregulated exchanges study finds

I think it would. I don't think any of the exchanges that I could have named off the top of my head were on their naughty list paywall is keeping me from loading it again to check , You're right, few of the mentioned exchanges are actually well-known.

They seem to be using coinmarketcap. At least those have been around awhile. The actual volumes on different exchanges are not anything close to that disparate, so while your hypothetical does raise a real way that such a claim could be misleading, it has nothing to do with the actual situation at hand.

They go on to identify pretty much every exchange I've ever seen discussed on HN for example as having legitimate volume-- coinbase, bitstamp, bitfinex, gemini, I think the headline should instead be "coinmarketcap volume claims are nonsense" -- which I think most people in the bitcoin space would say "well, duh".

At least my view purpose of coinmarketcap and similar sites seems largely to direct people to the latest token pumps, as evidence by the absurd "market caps" they display for illiquid pre-mined tokens What set off alarms for me is that there is no way that you get to 81 exchanges without including some really sketchy or obscure stuff.

But a site that wants to list sketchy tokens needs to include the sketchy exchanges because for the most part the non-sketchy exchanges won't list them.

Not quite that extreme, but the difference is quite disparate. Coinbase Pro legit has a 24h volume of 53,, whereas Coineal is reporting ,, I agree. I hate the downvoting feature here. It silences unpopular opinions instead of forcing people to respond. The mods really seem to like it though. Note how that comment ended up in a non-downvoted state.

EDIT: This is a very slick presentation. The weakest point I saw was a bit of handwaving around the key signing ceremony, specifically about how sharded keys are distributed. It's odd that they go into such detail about how to provision a clean laptop but then just sort of say "well, take your private key and mask it into seven pieces".

Animats 9 months ago. The slide deck is worth reading. There are only 10 real Bitcoin exchanges doing real transactions. The others are all clearly faking it, just from observing the overall trading patterns.

Something the slide deck doesn't address is how much all that fake activity affects the real price. The slide deck demonstrates that the real exchanges track each other closely. But what's the fake activity doing to the price? It's much bigger than the real activity; it must have some effect. This output proposes third-party custody and insurance from major insurance companies. The Winkelvoss ETF tried to unload all the risk of theft on their customers. Page 61 has the 10 exchanges that appear to have real volume of the 81 exchanges analyzed: Binance, Bitfinex, Kraken, Bitstamp, Coinbase, bitFlyer, Gemini, itBit, Bittrex, and Poloniex.

I didn't expect Bitfinex to be on that list, considering all the USDT shenanigans that they were caught up in. That said, there have been previous studies challenging that conclusion so I wouldn't be surprised if they found more signals on a deeper inspection. Probably no surprise to most people at least moderately familiar with the Bitcoin trading world.

I would've named 8 of those off the top of my head as exchanges with legitimate volume, and I'm not a day trader or all that involved, just a bit of a holder and followed along the craze.

Fascinating slide deck. They work out a scoring system to identify exchanges with fake volume. This has a number of consequences.

For example, the exchange-traded volume starts to look more realistic given Bitcoin's aggregate value. Similarly, futures volume starts to look more comparable to exchange traded volume. The main benefit, however, is to surmount the SEC's objection to previous ETF applications: bitcoin market manipulation.

I think the one-cent spread on Coinbase Pro mentioned in that article is partly just an artifact of their fee structure. Maker orders which are placed and sit on the order book have no fee, whereas orders which match against the order book are charged a fee.

So unless people are desperate to trade, they often save on fees by place a post-only order at 1 cent away from the other side of the orderbook. You can often see this as a pair of walls 1 cent apart on either side of the orderbook.

I spent last summer algo trading crypto. This study doesn't surprise me at all. On one market, I consistently saw limit orders that would appear inside the spread and then get instantly filled. If you do the math on how much you need to spend on exchange fees to get a coin to get coin to the top in volume, it's only a few grand.

That's assuming you don't own the exchange. KorematsuFred 9 months ago. We must demand government regulations so that they can commit the same fraud legally and also get bailouts when shit hits the fan. TehCorwiz 9 months ago. Free market's working fine. Don't buy scammy bitcoins, don't get scammed.

GauntletWizard 9 months ago. Company: "All our competitors are fraudulent. We're on the level, we promise". Seems like a good thing. Look at the volume for cryptocurrencies. In just 8 days the entire market cap of bitcoin will have 'exchanged hands' again, I know this is not exactly what volume means.

Meanwhile, most people are not using bitcoin as a medium of exchange. These numbers just seem absurd to me. There's no way that people are using bitcoin as a medium or exchange OR a speculative trade that frequently, unless these traders are fickle idiots.

That said, I know little about how currencies work, so maybe I'm making some invalid assumption. But I don't see how this data being faked is at all meaningful unless you're using this data to try to estimate the "value" of bitcoin, etc.

If so, yeah this is bad news for you. But how did you not know that bitcoin, etc. What exactly is your point? That I am repeating the point in a paywalled article? I have always thought the market data on cmc makes no sense , and am pointing out a simple experiment you personally can do to check.

I just am saying that basing any assumptions on the data from CoinMarketCap is to make those assumptions meaningless, because the data at CoinMarketCap is false. Apologies if I'm misreading your comment.

NelsonMinar 9 months ago. Yes the massive volume of fake transactions is actually good for Bitcoin. I appreciate the snark, but my point is that the massive volume data on coinmarketcap is so unbelievable that I prefer knowing that it's actually lower.

Do you have anything else to contribute? Really the snark is enough. High frequency trading perhaps? Possible, but I don't think it's likely. It doesn't make sense and never made sense. I don't think there are enough people who wrote and confidently run their own crypto-HFT bots to compete with volume in the stock market.

It does make sense if you look at how change addresses work with Bitcoin. Best-practice is to generate a new address for the 'change' from each transaction. Suppose an exchange has a hot wallet with 10btc.

Each time a user requests a withdrawal, say 0. On the blockchain, we can't tell if that was a transaction for 9. This amplifies apparent volume even if no one is doing anything questionable. Hacker News new past comments ask show jobs submit. Animats 9 months ago The slide deck is worth reading. KorematsuFred 9 months ago No. GauntletWizard 9 months ago Company: "All our competitors are fraudulent. NelsonMinar 9 months ago Yes the massive volume of fake transactions is actually good for Bitcoin.

NelsonMinar 9 months ago Really the snark is enough.

most bitcoin trading faked by unregulated exchanges study finds

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A crypto-resource management firm, Bitwise, has studied 81 trades, concluding that 71 of them showed trends that reflected fake exchanging volume. The investigation provided details regarding 71 out of the 81 trades was wash exchanging, a term that depicts an individual at the same time selling and purchasing a similar stock, or Bitcointo make the presence of action in the market, which is not genuine. The review, first announced by The Wall Street Journal, reflects worries by regulators that cryptographic money markets are not ready for control. Majority of bitcoin trading is a hoax, a study finds. The Report of Bitwise said. Bbitcoin is surprising that exchange with almost 18 times the volume of Coinbase Pro would have a spread that is 1, times larger. There have been doubts for some time that the business sectors are overinflated.

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The analysis opens with the argument that while an ostensible. Bitwise sourced its data from the CoinMarketCap, which it claims includes a large amount of this suspect data. Bitwise analyzed regulated exchanges using Coinbase Pro as a case study in order to reveal the nature of the trading patterns it deems to be trustworthy. Unlike other exchanges, the 10 on its list, which include Coinbase, Bitfinex, Gemini and Binance among others trade uniformly with one another, meaning the average spread in price between different platforms is less than 1 percent. Hougan said this also explains why trading volume for regulated Bitcoin futures has seemed weak. The office of New York Attorney General also flagged the issue in a recent report warning that exchanges are vulnerable. Few months ago Jay Clayton also noted that what investors expect is that trading in the commodity underlies that ETF makes sense and is free from the risk of manipulation. According to a report published by Bitwise Asset Management most bitcoin trading is highly manipulated by unregulated exchanges, as reported by CNBC on March 22, However, that might not be such a bad thing as it may.

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The value of Bitcoin and other cryptocurrencies crashed last summer, leaving many investors hurting and lots of crypto mining rigs with expensive GPUs running idle and unused. The good news for gamers is that the crash of crypto meant graphics unrgulated were finally available at reasonable prices.

Further, a new report has been rrading today that throws more shade on the legitimacy of Bitcoin trading as a currency. Regulators warn that unregulated cryptocurrency markets are ripe for manipulation. Bitwise is an asset manager that is trying to list the very first Bitcoin exchange fund.

The report was compiled to help regulators decide on the topic. He maintains that if the nonsense numbers are ifnds out, that Bitcoin should be an efficient and well-arbitraged market. Wash trading has been rumored in the Bitcoin market for a long time, and Hougan says that Bitwise is the first to look at which exchanges are delivering real volume. Hougan says that the exchanges have reason to want to fake volume. Higher volume from this manipulators makes them finda more appealing to those wanting to make new initial coin offerings ICO and are looking for exchanges with the highest trading volume.

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Most bitcoin trading faked by unregulated exchanges, study finds

US is asking its community to beta test the upcoming Binance. UK crypto exchange shuts down over EU law - Express. Bitwise, an asset tgading in the process finda trying to list the first-ever bitcoin exchange-traded fund, said it met with the Securities and Exchange Commission on Tuesday to discuss its application. Yang said, via its staking business, Fenbushi wants to provide long-term support to these blockchain startups. Re: Score: 1. Those could be modeled with real number functions and added to the frading contributions with time phase shifts. NBC New York. Opaque, that is, except to those who happen to operate one of these shops and can see all the activity on their internal reports before anyone else does. The debate isn't bitcoin or blockchain, it's about separating real ROIs from the noise-makers, says the executive director of Hyperledger. Syudy most cryptocurrency most bitcoin trading faked by unregulated exchanges study finds platforms don't use the same monitoring tools as stock exchanges, SEC Chairman Jay Clayton has warned that investors may not get a fair assessment of bitcoin's price. The survey, first reported by The Wall Street Journal, echoes concerns by regulators that cryptocurrency markets are still ripe for manipulation. Share Article. But a site that wants to list sketchy tokens needs to include the sketchy exchanges because for the most part the non-sketchy exchanges won't list. If so, yeah this is bad news for you. The recent vulnerability allegations raised against Maker are substantial, according to some experts. Still inregulated right. Business Insider.

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