Altcoin News: Study: Kraken Exchange Do Not Fake Trading Volumes, Binance Is (Relatively) Clean

May 7, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

According to the Blockchain Transparency Institute (BTI), Kraken is the most transparent cryptocurrency exchange in terms of overpriced trading volumes. The second place takes Binance.

The BTI research team, which aims to increase transparency and confidence in the cryptocurrency sphere, conducted a study using algorithms that identify individual accounts that are involved in trading.

According to the study, the trading volumes of the Gate.io, Bitso, Upbit, Bittrex, Poloniex, Liquid, Coinbase, Lykke and Kraken crypto exchanges are 90% not the result of fictitious trading. At the same time, Kraken was named the most transparent exchange with real trading volume, data on which is 99% identical with the information provided by the platform.

Bitfinex was called an “almost transparent” crypto exchange, which cannot fail to please its users against the background of the recent accusation of the illegal provision of services to several traders from New York and the United States.

“Binance and Bitfinex are currently unverified on our list as we discovered over 10% wash trading on both exchanges. Data reports have been sent to both and last week Bitfinex was able to confirm that their Irisium wash trading software was focused on their largest volume pairs primarily, and was not tuned into their middle to lower volume pairs. Bitfinex has been hovering around 88–90% clean as a whole with top pairs over 97%+ clean,” the report says.

The process of simultaneously buying and selling an asset with the aim of falsely increasing the volume of trade remains the main problem in the cryptocurrency industry. The BTI report states that 17 cryptocurrency exchanges from the TOP-25 falsify 96% of the data, while more than 60% of exchanges provide incorrect data regarding the trading volume.

“About 88–92% of daily trading volume is fabricated depending on the day. Bitcoin’s daily trading volume is about 92% fabricated…among the top 40 largest exchanges with actual volume, Bitcoin’s volume is about 65% fabricated. Almost all of this fabricated volume comes from OKEx, Bibox, HitBTC, and Huobi,” — BTI April 2019 Market Surveillance Report

Based on the data, CoinMarketCap will update the indicators that it uses to measure and report on the volume of trade. BTI analysts warn that artificial pumping of volumes is detrimental to both investors and projects.

Recall that earlier an anonymous group of researchers CryptoIntegrity stated that 86% of transactions and 88% of the trading volume on cryptocurrency exchanges are created artificially.

Author: Marko Vidrih