What do you make of a token that shows a commendable trading volume in one exchange and almost none on other exchanges? The most plausible explanation here is that there may be some discrepancy in the reporting of trading volume. Well, it’s somewhat of a similar case with Gate.io crypto exchange. 

Unrealistic trading volume on Gate.io

Gate.io is bustling with 469 cryptocurrencies and a sizable 24 hours trading volume worth $330.31 million. The crypto exchange covers 882 markets and 0.42 percent of market share. Seems peachy keen, right? Well, the underlying story has more to reveal than what meets the eye. 

According to competitors and several crypto experts, Gate.io has reported somewhat absurd figures regarding the trading volume of the majority of enlisted DeFi/NFT tokens. A serious allegation no doubt but the claims made are supported by a rational backing. 

The pristine truth is, most of the tokens that are shown to boast high trading volumes on Gate.io have almost no volume on other crypto exchanges! And that’s fishy isn’t it? There could be some minor discrepancies in the trading volume of a token across multiple exchanges but a landslide difference in volume raises suspicions. The bottom line is, the report on trading volume as published by Gate.io for the majority of coins seems unreal- it’s as if the figures have been botched to create a different picture before the world.

Absurd trading volumes attract traction

The phenomenon of inflated trading volumes published by crypto exchanges is not uncommon. In 2019, Bitwise had already warned the crypto world  about these sneaky tactics taken up by a large number of unethical crypto exchanges. There are two major reasons why some exchanges resort to publishing inflated trading volumes.

For starters, there is the lure of increasing traction in the overall crypto space. If a crypto exchange can show high trading volume, it gets easier for the platform to secure a top rank in the esteemed CoinMarketCap listing. Higher rank on CMC would pose the exchange as an authoritative platform which would eventually garner rising media attention and more popularity among traders. 

The other incentive is, a high ranking exchange on CoinMarketCap can demand spiked listing fees when a new cryptocurrency requests for listing on its portal.

Grossly misleading

Incorrect reporting on trading volume by a crypto exchange could lead traders into serious trouble, the beginners in particular. As these figures tend to hide the actual market status of a token, new traders succumb to flawed trading decisions, often resulting in heavy losses. 

Irony is, despite such fishy and unrealistic reports on trading volume, Gate.io is still a legit cryptocurrency exchange. It’s about time for authorities to conduct a serious investigation into the trading volume reports published by the exchange. Traders and the crypto world in general do have the right to know the truth. Absurd reports can be manipulative, leaving the whole trading market unsafe and traders at unnecessary risk. 

As a part of the crypto fraternity, I look forward to a transparent, authentic, and safe trading zone for the traders.