The 95% trading volume of most exchanges is fake

The 95% trading volume of most exchanges is fake
Abstract

According to a report by Bitwise Asset Management, it seems that 95% of the volume of unlisted currency exchanges is fake or unreal.

25 1 19

According to a report by Bitwise Asset Management, it seems that 95% of the volume of unlisted currency exchanges is fake or unreal.

Bitwise provided SEC with this information in the form of a report as part of the process of requesting a law change to set up the Bitcoin ETF.

The research is starting to begin with an unrealistic volume of $ 6 billion bitcoin trading seen in various markets:

In practice, traders reporting the highest volume of transactions are unidentifiable. Much of the reported or fictitious transaction volume or non-economic washing business.

Bitwise data from the famous coinMarketCop   site, which, according to them, contains a large amount of suspicious data, creates a misleading look at the bitcoin market.

Bitwise claims that nearly 95% of the reported transaction volume is fake, and hence the real-world bitcoin market with a daily turnover of about $ 273 million is much smaller, more regular, and more legit than expected.

Bitwise first analyzed the lawmaking exchanges and used Coinbase Pro as a case study to examine the nature of the trading patterns that were considered reliable. According to reports, key features include a mix of unequal purchasing and sales orders that have always fluctuated.

The report goes on to point out that the trading patterns in Coinbase Pro show a large number of decimal places, which are more natural than human behavior.

Bitwin also examines the spread (the price difference between the order of purchase and sale) as a parameter:

This parameter [spreads] is $ 0.01. When this screenshot was taken, bitcoin traded at $ 3,419. This means that the opportunity to take advantage of this difference in price would only result in 0.0003 percent of the profit, which could be the lowest among all the tradable financial instruments.

At the time of Bitwise research, Coinbase Pro reported nearly $ 27 million a day for Bitcoin. The figure was reported at $ 4800 million at the time for Coinbene, a notorious exchange. Bevvay's studies in relation to Coinbene show that, according to observed patterns, the characteristics of a suspect exchange are seen.

The suspicious signs include volatile and non-justifiable patterns of sales orders, a lack of trading in which decimal numbers are included, or low value transactions. Sales orders at Coinbene exchange occur in certain time periods, one of which compensates for another.

In addition, the spread at Coinbene Mercantile Exchange was about $ 34.74 during the Bitwise research, which is a very high figure compared to $ 0.01 in Coinbase Pro. Surprisingly, a swindler who claigms to have a turnover of 18 times Coinbase Pro has a spread of 3400 times that.

Suspect exchanges exhibit sustained turnover over a 24-hour period, while trading volumes in regulated exchanges vary with respect to waking hours and sleep.

The BeatVision report ends with the conclusion that its findings suggest that the Exchange-traded fund scheme for the "BeatOiz Bitcoin ITIF Trust" is both set by the SEC to meet the requirements of the 1934 Securities Exchange Act.

According to a previous report, a new study by The Tie Trading Analysis Platform shows that 90% of the exchanges reported by digital currency exchangers are fake and fake.



Source: cointelegraph


 

; ;
(Required)
(Required)