Almost 90 percent of reported trade volumes may be incorrect, new research from analytics platform The Tie warned in a released on March 18.
Reporting on figures gathered from 97 exchanges, researchers found that the vast majority of the volume claimed to come from users may not in fact exist.
The revelations came as a result of calculations of lesser-known exchanges versus well-known businesses such as and .
“In total we estimated that 87% of exchanges reported volume was potentially suspicious and that 75% of exchanges had some form of suspicious activity occurring on them,” The Tie wrote in on the findings. The organization added:
“If each exchange averaged the volume per visit of , , , , and Kraken, we would expect the real volume among the largest 100 exchanges to equal $2.1 (billion) per day. Currently that number is being reported as $15.9 (billion).”
Exchanges have often fielded accusations of volume misreporting: a similar reported in March 2018 warned of similar problems with data from exchanges.
Then, as now, CEO (CZ) took industry participants to task, arguing listing resources such as added to the confusion.
“Why do exchanges fake volumes?” he queried on following The Tie’s report. CZ also wrote:
“(CoinMarketCap) is [the] highest traffic website in our space, and [the] biggest referrer for all exchanges. Ranked high on CMC has benefits for getting new users. BUT at the expense of DESTROYING CREDIBILITY with pro users.”
Zhang repeated similar claims about CoinMarketCap which in December, focusing on the the top 25 () pairs.
Last month, meanwhile, Cointelegraph on how overall exchange volumes had dropped to their lowest levels since May 2017.
Published at Tue, 19 Mar 2019 14:17:43 +0000
