About a week ago I wrote about rigged btc trade volume. When I was writing that article, I was frustrated but also hoped that it’s not true. But here we are — OKEx admits that they faked their volume trades. Well, as always, I will try to overlook my depression and to look into the situation.

It started when OKEx Financial Market Director Lennix Lai admitted that wash trading practice is pretty common on the platform. Wash trading is feigning trading activity on the market and facilitating an artificial increase of volume trades and prices.

However, as he says, the exchange takes all possible actions to prevent such activity. And the answer on the main question if the exchange implements so-called wash trades, Lai answered “NO.”

Also, he admits that the main reason for bloated volumes trades is an OKEx eighth-level commissions structure:

As you’ve already noticed, my voracious friends, a significant advantage of such structure use traders, who’s total trading volume per month consists of hundreds or even thousands of bitcoins. Such market participants may pump trade flows purposely. They do it with the help of bots. That lets them to up their trading level and reduce to transaction costs.

Lai added that OKEx plans to increase tic’s price on the platform that will hamper to pump volumes trades to bots. Also, they will strengthen KYC policy. Such auction will help to identify accounts with suspicious activity and to impose restrictions regarding them (if necessary).

The head of Binance exchange previously stated that all the fake volume trades reports could be useful for the whole industry. It motivated marketplaces to take measures to deter all the market manipulations.

What is more, I would like to remind you that CoinMarketCap confirmed that the information about rigged volume trades is true. He announced the intention to implement new metrics to fight with misleading data.

Oh well… All I’ve got it’s a pain. And I’m overdramatic, I know. But I hope, that one day, all these scammers will stop market manipulation. The reason why some people believe that the whole crypto industry is a scam are these people. The people who don’t do they work correctly and let so-called “eighth-level commissions structure” create rigged volume trades. That’s all for today. I wish you at least one day without scam news.