Wash Trading: Over 90 percent of the crypto-trade volume is Fake

On the classic financial market, the artificial creation of trade volume by stock exchanges – referred to as Wash Trading is illegal. Finally, it is a tried and tested means to market manipulation and is therefore inadmissible.

it is Different to the largely unregulated crypto market. Here exchanges Fake volume of trade generate what holds the stuff. Thus, there is hardly any Exchange that takes place of this practice, undetectable distance. How serious is the difference between the actual and alleged Trade Volume is, however, a comparative view on various market indices.

the platform Coingecko shows the hour, for example, a daily trading volume of 911 million US dollars for Ripples XRP. According to the open-marketcap, price, and data platform, which claims to be the only Wash-Trading-free Bitcoin lists stock exchanges, could be currently, however, only from a trading volume of around 47 million US dollars. In other words: Almost 95 percent of the XRP volume is fake.

This image runs through all of the Top-10-Kryptos. A selection:

Yin Yin Wu, founder of the open marketcap, explains the dubious practice of the stock exchanges, however, like this:

Exchanges have an incentive to publish incorrect Figures, compared to the competition in a better position.

Although the volume for the big Kryptos, such as Bitcoin, Litecoin, and Ether, in spite of the fake is high enough. For smaller Coins, the discrepancy means, though, is that the markets, in truth, are extremely illiquid.

the open marketcap is a new crypto tracker that calculates price and volume using data from the 10 trusted exchanges on the @bitwise invest report.

A 95% drop in trading volume means the market for most alts is extremely illiquid / non-existent: https://t.co/J6yLb5VxAx

Yin Yin Wu (@yinyinwu) March 26, 2019

in Addition, you must correct after taking into account of Fake volume, the market dominance of Bitcoins to the top:

Bitcoin trades at 7x, not 2x the volume of the Eth when considering only trusted exchanges.

Bitcoin marketshare by volume doubles. It increase from 32% to 64%.

Yin Yin Wu (@yinyinwu) March 26, 2019

Bitcoin is seven times, not just when you double the trade volume of ETH, if you look at fair exchanges. The market share in the trading volume of Bitcoin has doubled and is rising by 32 percent to 64 percent.

distributed Already last week, BTC-ECHO reported on the new Report of the Blockchain-Transparency Institute. The investigation revealed, among other things, that well-known stock exchanges such as OKEx and HitBTC belong to the sinners.