Centralized exchange Bithumb allegedly has $250m in fake daily trading volume...

Kemarit

legendary

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Quote from: Freny250 on March 19, 2019, 09:50:10 AM

Most of this exchange use bot to trade and as such their trading volume are just fake. The real buyers and sellers are few with many bo5s. Onky a few exchange like binance, okex maintain real trade volume without bot influence

No, OKeX have been out found to be practice wash and fake volume trading, read the latest report below, (https://www.blockchaintransparency.org/). Binance and Bitfinex are the only two exchanges found not doing those fraudulent procedures and that is why Binance remain the most trusted exchange so far. They probably wanted to show that they have volumes to enticed traders, so for those newbie traders, just used your due diligence and research which exchanges you really wanted to register and do your trading activity as you might be a victim of fake volumes and potentially lose your funds or capital.

Freny250

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Most of this exchange use bot to trade and as such their trading volume are just fake. The real buyers and sellers are few with many bo5s. Onky a few exchange like binance, okex maintain real trade volume without bot influence

Bytem3

full member

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Their volume is dropping badly. I guess they are faking most of it, according to a report they've recently laid off 50% of their staff, that tells you how much volume they really have...

https://coincodex.com/article/3230/bithumb-will-lay-off-50-of-staff-according-to-report/

rickadone

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Quote from: matthewoz101 on September 05, 2018, 11:27:46 AM

You live in a bubble if you think there is corruption in every market or every system, that's reality.

Decentralized exchanges are the future. They can be manipulated through trading bots and artificially inflated volume. It's not difficult to do.

This is something that has been obvious right from the onset, and I do not see it as anything new at all.
The likes of Bittrex, Bitfinex, bithumb, and so on, are fully centralized and what else would you expect ?
Everything in the centralized world is easily prone to manipulations, which is something you can hardly get in the decentralized space; at least, for what reason would we want to see manipulations such as fake volume in a decentralized exchange?

European Central Bank

legendary

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I would like to know the proportion of people on exchanges looking to trade versus actually exchanging coins and leaving, the latter is probably gonna be a much smaller number.

because of that I don't see how decentralized exchanges will take over the world. traders want order books and instant executions and so far only centralization can deliver that.

no one should be surprised at anything exchanges get up to. they're an almost infinite source of questionable behavior and in many places no one knows or cares enough about them to stop it.

1Referee

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Faking volumes is marketing for exchanges.

If we look closely at what sites the majority of the exchanges get their traffic from, then it's either Google or CMC. Especially CMC has been gaining a tremendous amount of popularity with how effective it is to up-rank your exchange by simply boosting your volumes. Higher CMC rank as exchange means you'll be getting loads and loads of more traffic.

It's not something I think is a good thing, but in this industry you don't stand a chance as exchange being 100% fair in all aspects. In order to gain attention, you have fake volumes, otherwise you'll be packing up your stuff with a loss 12-24 months later. It's a brutal market with how extremely competitive it is. Hundreds of exchanges are trying to fight for the same pool of users. Glad I'm not planning to run an exchange. Cheesy

Traderbtcc

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★Bitvest.io★ Play Plinko or Invest!

Quote from: MrsBlockchain on September 05, 2018, 01:13:53 AM

Last week, the Blockchain Transparency Institute (BTI) published a report revealing that crypto exchanges around the world were faking $6 billion of its daily volume. However, they said that Bithumb was among the few crypto exchanges that were actually being accurate when reporting trading volumes. Are decentralized exchanges such as Bancor the answer to stopping this ever growing trend?

Bancor doesn't stand a chance.. At least not with its lacklustre dex. Fake trading volume should be attributed to bot trading on these exchanges. I remember fairly new exchanges like Bitforex, coinone etc were topping the exchange volume charts with billions in value of trades. Even Fcoin had about $7B daily trading volume. From the look of things too, decentralized exchanges might get bot support soon due to popular demands.

Ewinsane

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Quote from: MrsBlockchain on September 05, 2018, 01:13:53 AM

Last week, the Blockchain Transparency Institute (BTI) published a report revealing that crypto exchanges around the world were faking $6 billion of its daily volume. However, they said that Bithumb was among the few crypto exchanges that were actually being accurate when reporting trading volumes. Are decentralized exchanges such as Bancor the answer to stopping this ever growing trend?

As long as it is centralized, it can be manipulated and controlled, that is just the ideology behind centralization. All these normal exchanges are centralized and until we start seeing decentralized exchanges taking the lead in the space and coming up with a better way of trading for most people, before we would be able to see less of manipulations like this.

It is not a surprise that exchanges in the crypto space generate fake volume, so I do not see it as news, but over time, as we progress and develop, things would change.

capoeira

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totaly expected in an unregulated markte. they probably even paint candles, walls and stuff

chocolah29

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Quote from: MrsBlockchain on September 05, 2018, 01:13:53 AM

Are decentralized exchanges such as Bancor the answer to stopping this ever growing trend?

It's hard to tell that as bancor is still just new yet its vision is clearly feasible than the others. From aiming to increase the liquidity in dex to low fees, well I guess future dex should be look after what bancor had did.

Quote from: demonic098 on September 09, 2018, 11:32:04 PM

This is no longer new, the competition is extremely high that's the reason why they're faking their volume. How can you say that DEX would can do something about fake volumes?. Do you really think they can't manipulate the trade volumes?.

IDK but I believe that fake trading volumes are lesser than DEX since it doesn't have a third party that can be more manipulative.

demonic098

jr. member

Activity: 252

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Ximply for president!!!

This is no longer new, the competition is extremely high that's the reason why they're faking their volume. How can you say that DEX would can do something about fake volumes?. Do you really think they can't manipulate the trade volumes?.

lovinglife

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Not surprised.

richcorner100

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https://exip.live/

Many exchanges use fake daily trading volume as advertising to attrack trader, i think this is because not any regulation to check each their trading volume, so should be any regulation for daily trading volume report. Fake trading volume can be make bad impact to the crypto ecosystem. Sometimes i confused with new exchange like Bitforex can be include in top 10 exchange base on trading volume, and this is look like they make fake report.

Tytanowy Janusz

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Quote from: MrsBlockchain on September 05, 2018, 01:13:53 AM

Last week, the Blockchain Transparency Institute (BTI) published a report revealing that crypto exchanges around the world were faking $6 billion of its daily volume. However, they said that Bithumb was among the few crypto exchanges that were actually being accurate when reporting trading volumes. Are decentralized exchanges such as Bancor the answer to stopping this ever growing trend?

These fake trades was noticeable with the naked eye. They wasnt even trying to hide fake trades. They just appear in trade history but not in order book as taker realising makers offer. Or it was instant - maker offer and in 1 moment taker grab those coins. If you put your offer at these price they move with those fake trades above your order.

Without fake trades there is also trade mining and trading competitions on various exchanges made only to boost volume.

Does it harm us? Well in my opinion is only agressive marketing. There are houndreds of exchanges but only top 5 are beeing used cummon. Beeing new exchange and instantly in top 5 trading volume only by 1 trading scrypt is the best marketing for exchange - but not to honest. Decentralized exchanges wont avoid that. Creators will still be able to create looots of fake trades.

matthewoz101

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You live in a bubble if you think there is corruption in every market or every system, that's reality.

Decentralized exchanges are the future. They can be manipulated through trading bots and artificially inflated volume. It's not difficult to do.

MrsBlockchain

newbie

Activity: 15

Merit: 2

Last week, the Blockchain Transparency Institute (BTI) published a report revealing that crypto exchanges around the world were faking $6 billion of its daily volume. However, they said that Bithumb was among the few crypto exchanges that were actually being accurate when reporting trading volumes. Are decentralized exchanges such as Bancor the answer to stopping this ever growing trend?

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