Finance News

Story: Reporting Extreme Dubious Volume Is Very Dangerous For Cryptocurrency Space and the Investors

By Dan Saada

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It has been hard for several cryptocurrency exchanges to win regulator and user trust.  There was a lot of manipulation happening over trade volumes and prices.

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It has now been uncovered that the crypto volumes reported even in the best of the cryptocurrency exchanges are not genuine.  Nearly 90% of these volumes could be false.

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Researchers from the TheTie reported, "Some notable outliers were BitMax, Lbank, BW, and ZBG which had extremely high reported volumes, but expected volumes which in some cases…

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Reporting extreme dubious volume is very dangerous for the cryptocurrency space and the investors.

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When explaining the situation in depth TheTie has to state:

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“The weighted average trading volume per web visit for Binance, Coinbase Pro, Gemini, Poloniex and Kraken was selected as a baseline volume per user to calculate expected volume.

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Mati Greenspan, one of the senior analysts in the cryptocurrency space has to state that the "Alt Season" is trending in the Market.

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Since users are searching for their trades in cryptocurrency exchanges with high volumes, reporting false volume is a problem because users would be misled when investors are…

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Fake estimations are reported by different tokens in a way to manipulate the market in their favor, in a way to improve their position in the market.

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Fake estimates can lead to the dump of multi-month high prices all of a sudden which is not healthy in a cryptocurrency space.

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Those cryptocurrencies that are listing the exotic asset types are making profits for their investors. A larger market with a swing comes with a decent amount of discount.

The Currency Analytics

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