[2013-03-23] 95% of Reported Bitcoin Trading Volume Is 'Fake' - page 2.

Kakmakr

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Quote from: joniboini on March 23, 2019, 10:17:37 PM

IIRC the end of the report suggest that ETF is needed to avoid such fake volumes as the trend. That's a nice twist. Somehow it suggest that more regulations are required to make sure crypto business is free from manipulation. A nice opinion for those who believe in ETF.

An ETF will only calculate the larger institutional capital investments that are done on a daily basis and will not include the millions of smaller transactions that are done by individual on 1000s of exchanges all over the world. Also remember that CMC are only using transaction data from the larger exchanges out there and most of the transactions on the smaller exchanges are not even counted. Roll Eyes

Also look at the motives for Bitwise to do this research, to find the hidden agenda for this revelation. Roll Eyes

bbc.reporter

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What if most of the cryptocoin exchanges with fake volumes are a part of a global money laundering network service for billionaires who have something to hide?

gentlemand

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Quote from: Betwrong on March 24, 2019, 12:48:02 PM

It's possible that crypto currencies have been traded more aggressively than stocks, and then the volumes on CMC are more or less correct.

A few seconds of browsing and nosing around would put that idea to bed forever. It's pointless to refute these reports when the evidence is sat in front of us and pretty much totally shameless about it too. The only question is percentages but that's academic. It's a high one regardless.

Betwrong

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I don't know if they are telling the truth or not, but indeed it's hard to believe that BTC daily trading volume sometimes is close to (or even greater than) the total amount of circulating supply. Let's look at the stock market for comparison. The monthly trading volume of stocks according to this article is around 10% of the total value of all stocks available to trade. Now if we calculate the monthly trading volume of all cryptos

$29 billion x 30 = $870 billion

and take into account that the total market cap is $140 billion, we are going to have

870 : 140 = 6.21

which means that the monthly trading volume of all cryptos is around 621% of the total value of all cryptos.

But I'm not sure about that. It's possible that crypto currencies have been traded more aggressively than stocks, and then the volumes on CMC are more or less correct.

joniboini

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IIRC the end of the report suggest that ETF is needed to avoid such fake volumes as the trend. That's a nice twist. Somehow it suggest that more regulations are required to make sure crypto business is free from manipulation. A nice opinion for those who believe in ETF.

gentlemand

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Quote from: pixie85 on March 23, 2019, 07:50:43 PM

We all know exchanges are faking volume. The chinese were caught doing it in 2014. If CMC is taking data straight from exchanges it is destined to be fooled.
I think that 95% is also an exaggerated number. How can they know that the real volume is 270 million is the exchanges are reporting it. They would have to prove that they are lying first instead of blaming CMC for their reports.

Coinbase + bitstamp have 25 million volume together and bitmex is reporting 600 million.

Though they show Bitmex they don't actually count it as volume. Bitcoins are not being traded, just contracts. Considering how degenerate most traders are and how much they love being boned up the ring piece I can well believe Bitmex's figures are one of the accurate ones.

pixie85

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We all know exchanges are faking volume. The chinese were caught doing it in 2014. If CMC is taking data straight from exchanges it is destined to be fooled.
I think that 95% is also an exaggerated number. How can they know that the real volume is 270 million is the exchanges are reporting it. They would have to prove that they are lying first instead of blaming CMC for their reports.

Coinbase + bitstamp have 25 million volume together and bitmex is reporting 600 million.

gentlemand

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Quote from: mrdeposit on March 23, 2019, 04:53:24 PM

Interesting article but some questions come to my mind while reading it. First of all, why CMC need to show crypto trading volume so high or inflated? The increased fake volume will not bring any additional advantage to their site but these fake numbers can be used for manipulation purposes from my point of view.

Odd that two of these studies have arrived in quick succession. Running CMC must be a pain up the arse. They're so influential at present that they're constantly going to be gamed from every possible angle to gain advantage. Or they're colluding and don't give a shit.

1Referee

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Quote from: mrdeposit on March 23, 2019, 04:53:24 PM

Interesting article but some questions come to my mind while reading it. First of all, why CMC need to show crypto trading volume so high or inflated? The increased fake volume will not bring any additional advantage to their site but these fake numbers can be used for manipulation purposes from my point of view.

It's CMC's job to show whatever data the API of an exchange pumps through. What they do on a less frequent basis is exclude some exchanges if they are too obviously manipulating things, but we can't really expect them to combat each and every exchange because it would obviously affect their income significantly.

What people need to understand is that CMC is free to use, so if you think they aren't doing a good job providing accurate/honest data, then simply skip them.

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Quote from: stmar on March 23, 2019, 04:50:16 PM

95% of Reported Bitcoin Trading Volume Is 'Fake'

Bitwise Asset Management reports that CoinMarketCap (CMC) has been greatly exaggerating average bitcoin trading volumes.

CMC has been reporting BTC trading volumes of around $6 billion - whereas it's actually around $270 million according to Bitwise's research.

A recent study conducted by Bitwise Asset Management has revealed that as much as 95% of spot bitcoin (BTC) trading volume has been “faked” - as it’s being inaccurately reported by loosely regulated or completely unregulated cryptocurrency exchanges.

Founded in 2017, Bitwise Asset Management is a privately-held, San Francisco-based crypto research firm that also serves as a “trusted partner to individuals, wealth managers, family offices, investment managers and institutions” in making business-related decisions in the digital asset industry.

In its extensive report, the research team at Bitwise analyzed the world’s top 81 crypto exchanges, in terms of trading volume, and found that financial data reported by CoinMarketCap (CMC), a leading crypto data provider, had been artificially inflated. Researchers at Bitwise claim that CMC had reported a combined $6 billion in average daily trading volume. However, the results of a study commissioned by it revealed that only $273 million of CMC’s reported BTC trading volume was “legitimate.”

<.....>

Read:
https://www.cryptoglobe.com/latest/2019/03/95-of-bitcoin-trading-volume-reported-on-coinmarketcap-is-fake-bitwise-report/

Interesting article but some questions come to my mind while reading it. First of all, why CMC need to show crypto trading volume so high or inflated? The increased fake volume will not bring any additional advantage to their site but these fake numbers can be used for manipulation purposes from my point of view.

stmar

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95% of Reported Bitcoin Trading Volume Is 'Fake'

Bitwise Asset Management reports that CoinMarketCap (CMC) has been greatly exaggerating average bitcoin trading volumes.

CMC has been reporting BTC trading volumes of around $6 billion - whereas it's actually around $270 million according to Bitwise's research.

A recent study conducted by Bitwise Asset Management has revealed that as much as 95% of spot bitcoin (BTC) trading volume has been “faked” - as it’s being inaccurately reported by loosely regulated or completely unregulated cryptocurrency exchanges.

Founded in 2017, Bitwise Asset Management is a privately-held, San Francisco-based crypto research firm that also serves as a “trusted partner to individuals, wealth managers, family offices, investment managers and institutions” in making business-related decisions in the digital asset industry.

In its extensive report, the research team at Bitwise analyzed the world’s top 81 crypto exchanges, in terms of trading volume, and found that financial data reported by CoinMarketCap (CMC), a leading crypto data provider, had been artificially inflated. Researchers at Bitwise claim that CMC had reported a combined $6 billion in average daily trading volume. However, the results of a study commissioned by it revealed that only $273 million of CMC’s reported BTC trading volume was “legitimate.”

<.....>

Read:
https://www.cryptoglobe.com/latest/2019/03/95-of-bitcoin-trading-volume-reported-on-coinmarketcap-is-fake-bitwise-report/

Topic: [2013-03-23] 95% of Reported Bitcoin Trading Volume Is 'Fake' - page 2. (Read 352 times)