[2019-11-13] Crypto Space Has Shockingly Low Total Liquidity of $500 Million - page 2.

gentlemand

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Quote from: DooMAD on November 14, 2019, 04:25:16 PM

Perhaps it wasn't 100% clear-cut, but it was close enough for me to be convinced. See this CoinDesk article from back in 2013. In particular, this section:

At least the Chinese did a more convincing job of it than the current crop, but I well remember the occasional moment when their bots stopped stoking it and their exchanges died instantly. Even if there were some real people as well it was nothing but zero fee froth.

I could never get over how mindless the press were in eulogising China's trading 'dominance' when it could be debunked with twenty seconds of research. The death of those exchanges is probably the biggest factor in the price being set free. For some reason the West would run screaming every time those 3-4 Chinese teenagers dumped on them.

DooMAD

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Quote from: gentlemand on November 14, 2019, 03:12:32 PM

Back in the day you could never quite be sure. Now it's there out in the open. Witness those exchanges with trillions in volume but $4 on the buy side yet the trades magically happen just above it.

Perhaps it wasn't 100% clear-cut, but it was close enough for me to be convinced. See this CoinDesk article from back in 2013 as an example. In particular, this section:

Quote

In his article posted on 20th December on Xueqiu, one of China’s most popular investors’ social media platforms, Shi claims that in a two-hour period on 19th December, OKCoin’s data indicates that over 30,000 BTC changed hands.

However, by comparing the number with the tally of selling and buying orders that were displayed separately, Shi concluded that the real transaction volume could be as low as one tenth of what the company purported to exchange.

gentlemand

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Quote from: DooMAD on November 14, 2019, 01:52:18 PM

Fake volume has always been a thing the entire time I've been involved in crypto.

There's definitely been an explosion in laughable junk in recent times. Back in the day you could never quite be sure. Now it's there out in the open. Witness those exchanges with trillions in volume but $4 on the buy side yet the trades magically happen just above it.

It's good that CMC are starting to do something about it. Shame that they got powerful enough for it to become a problem.

DooMAD

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Fake volume has always been a thing the entire time I've been involved in crypto. Not only is it nothing new, but it's not even unique to crypto. Fiat businesses try to pad their numbers where they can, so it looks good for investors. Companies about to float on the stock market often have giveaways, or two-for-one deals, basically whatever special offers they can get away with so they can give the impression they're moving a greater amount of products than they normally would be. Anything to pump up the numbers.

The only differences in crypto are that it's easier to obfuscate and manipulate figures due to pseudonymity and there are currently fewer regulations to adhere to.

buwaytress

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Why is that shocking? Think the entire ICO space in 2018 sort of knew this, which is why almost every other "solution" was about liquidity. Which is why exchange listing is such a big sub industry in itself, which is also why DEXs gained momentum (though still never to the level I had really hoped they would be).

Not really much of a concern for non-serious traders though. People who need things to happen don't really care about orderbooks and go OTC, maybe even staggered p2p as a last resort.

gentlemand

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https://cryptoiq.co/the-crypto-space-has-shockingly-low-total-liquidity-of-500-million-or-less-and-numerous-top-exchanges-caught-faking-their-volume/

It's extremely silly measuring liquidity entirely by what's on order books, plenty more will be sitting on the sidelines. Also with things as comatose as they've become it won't bear any resemblance to the more muscular periods of time.

All the same there are some pretty comical figures such as - Bibox that has volume of $1.05 billion and liquidity of $300,000, ZB that has volume of $483 million and liquidity of $310,000.

I will guess that the real figures for most of the exchanges clogging up the scene probably require another two zeroes removing, or just a good old zero.

Topic: [2019-11-13] Crypto Space Has Shockingly Low Total Liquidity of $500 Million - page 2. (Read 290 times)