And also fake volume generation is part of advancement in cryptocurrency technology
Topic: Fake trade volumes - page 4. (Read 640 times)
When we talk about new tokens/coins generating fake volume is simply for them to be listed in CMC and not only that but also to attract more investors since when they get listed there, they are exposed to many investors
And also fake volume generation is part of advancement in cryptocurrency technology
And also fake volume generation is part of advancement in cryptocurrency technology
This issue it's been around for quite a long time now that exchanges are being accused of faking volumes to gather popularity of such coins or tokens in order to gain or increase liquidity to attract buyers of course. Sad to say that all that allegations were true after all and even popular exchanges does that to make their platform popular.
There are 2 things that are very influential namely the project and the exchange, who actually created the fake volume?
From one of the articles, quoted on the list of top exchange only 3 of the 25 exchanges were declared real volume
From one of the articles, quoted on the list of top exchange only 3 of the 25 exchanges were declared real volume
Fake trading volumes are some of the marketing strategies used by team members of projects to lure crypto investors to invest into their project. This is a collaboration which is initiated by the team members of the project but the developers of the exchange platform are the ones that execute all this fake volumes. I really hate exchange platforms that brings this up and most of them are really small exchanges that have just come into the cryptospace. However investors should also not invest into projects that have their coins being manipulated.
I've never think how it becomes effective to attract traders and investors as well. Doing such thing will only be losing potential clients and the trust of the community.It is better for them to tell the truth and never give lies. I know it is attractive to look those huge volume but somehow, hiding the truth will only ruining their reputation.
Fake trading volumes are some of the marketing strategies used by team members of projects to lure crypto investors to invest into their project. This is a collaboration which is initiated by the team members of the project but the developers of the exchange platform are the ones that execute all this fake volumes. I really hate exchange platforms that brings this up and most of them are really small exchanges that have just come into the cryptospace. However investors should also not invest into projects that have their coins being manipulated.
Not only in small exchange, even in big exchange there are fake volume.
You should be aware than this market can be manipulated by those who have the power to do so, they are the whales in particular.
There is no transparency here, of the total exchanges in the market, there are only few that shows real volume and the rest are accuse of wash trading.
You should be aware than this market can be manipulated by those who have the power to do so, they are the whales in particular.
There is no transparency here, of the total exchanges in the market, there are only few that shows real volume and the rest are accuse of wash trading.
A few years ago, exchanges in the Asian countries faked their trading volumes because they were in competition with other exchanges to get more people to trade on their platforms. So to show that you have a popular platform, you have to fake the trades to create the perception with "new" traders that they would have a better chance to get their buy or sell orders to go through quicker than with their competition.
I know the regulators clamped down on some of these exchanges and some were also closed down, but I have not heard of any of them being closed recently, so I guess it is not that prevalent anymore.
I know the regulators clamped down on some of these exchanges and some were also closed down, but I have not heard of any of them being closed recently, so I guess it is not that prevalent anymore.
All Bitcoin trade volumes are false, this is because P2P and local bitcoin trades are not included in the published stats. I suspect this is where the largest volumes occur as well during normal trading periods.
My bet would be that larger volume is in OTC trades between whales, exchanges, 'institutional' investors, people making a living from buying/selling outside LBC, etc. People who initially met via LBC might also want to forgo the middleman and his fees next time if they trust one another enough.
That's not a new thing here in the cryptocurrency world. That's why I don't trust coinmarketcap that much because most projects do wash trading in order to attract more attention to others. I've been in a project that do this but instead he made a competition to trade and add volumes and compensate those who do this. It's wrong because it's unnatural and it tells something about the project.
I've some concerns and queries, i observed that many altcoins even some major coins create fake volume, if a project is new and initially listed on a small exchange and create fake volume it's obvious understood that they're trying to get listed on coinmarketcap, but A coin which is existed in everywhere, even big exchanges but still they create fake volume on small exchanges, what this means? Why they do that? Is everything just done by exchanges or project itself, and also that makes a clear difference in prices as compared to official price of market that makes frustrated.
it's clear if they are making a fake exchange volume I think maybe it's just to boost investors and attract investors. furthermore they are not able to get large volumes normally, so I think now this is just a trick and we have to be careful with tokens like that.
Most smaller exchanges do create fake volumes. Examples are: Dobitrate, coinbit, bitebtc (scam exchange), Idax and many others. Some do this to lure unsuspecting traders to their exchange thinking they will could perform an arbitrage.
There are several possibilities why exchangers choose to make fake volume. Like increasing liquidity to attract new traders to their platforms. Or fake volume is usually done by one trader but with multiple exchanger accounts by doing wash trading. and the third possibility is due to manipulation of the exchanger.
That possibilities are really working, its more on the fake volume with the coin itself but most of the time it is being executed by the exchange. Even a top coins are being manipulated, there's a fake volume and a fake value after all. Cryptocurrency are prone to this one, actually many investors are losing money because of this fraud. I hope for the exchanges to be more transparent and to let their users appreciate their own platform and not to deceive them. 
There are several possibilities why exchangers choose to make fake volume. Like increasing liquidity to attract new traders to their platforms. Or fake volume is usually done by one trader but with multiple exchanger accounts by doing wash trading. and the third possibility is due to manipulation of the exchanger.
Exchanges were the key support system for Cryptocurrency network, this makes them have a big control over the volumes. Fake trade volumes were once inspected and it made a huge crash to the entire market, and this isn't controllable. Even there were paid services from exchanges to show high volumes on specific assets.
Many countries already make a big threat to those who are responsible for manipulating the trade volume, and if there’s a regulation a strong like this, fake volumes can be lessen. But its true, exchanges are being paid for this and we don’t know if top exchanges are also doing this, its possible of course. 
I've some concerns and queries, i observed that many altcoins even some major coins create fake volume, if a project is new and initially listed on a small exchange and create fake volume it's obvious understood that they're trying to get listed on coinmarketcap, but A coin which is existed in everywhere, even big exchanges but still they create fake volume on small exchanges, what this means? Why they do that? Is everything just done by exchanges or project itself, and also that makes a clear difference in prices as compared to official price of market that makes frustrated.
As far I know, exchanges creates those fake volume to show that their exchange is very active (not sure though). Even the developers of those shit coins uses those trade bots to increase the volume to show people that the coin is not a "dead" coin. Unfortunately, some newbies fall for it and by just looking at the coins volume, they think it's going to be a very good investment but ends up making a huge loss.
There is only a single reason why volume is manipulated on exchanges.
The exchange or coin's company want's to showcase they have a lot of supporters (if the price is growing and there are a lot of users buying and selling their tokens, it looks like these fake people are interested in buying their coins).
Usually, it the company of the coin that wants their coin to be washed, and therefore pay a specific fee to the exchange for them to fake the volume - this is usually only possible on smaller exchanges, but there are a lot of large Asian exchanges that also perform in faking trade volumes/market making.
This is a very good explanation of how faking volume usually works.
The exchange or coin's company want's to showcase they have a lot of supporters (if the price is growing and there are a lot of users buying and selling their tokens, it looks like these fake people are interested in buying their coins).
Usually, it the company of the coin that wants their coin to be washed, and therefore pay a specific fee to the exchange for them to fake the volume - this is usually only possible on smaller exchanges, but there are a lot of large Asian exchanges that also perform in faking trade volumes/market making.
This is a very good explanation of how faking volume usually works.
You see that A buys at 3.2, B selles at 3.201 C buys at 3.2 again, but in reality, the actual legit orders which are placed at 3.19 and 3.21 never get executed. Or far easier they execute with high priority some trades at the same prices when the spread is big enough to not touch the real walls.
Of course, exchanges that have a history of faking volumes have more an more advanced scripts but the basics are still the same.
Of course, exchanges that have a history of faking volumes have more an more advanced scripts but the basics are still the same.
Culprits here are the exchanges because projects can't access and change order book which is necessary to manipulate the figures
A coin which is existed in everywhere, even big exchanges but still they create fake volume on small exchanges, what this means?
Why they do that?
Is everything just done by exchanges or project itself, and also that makes a clear difference in prices as compared to official price of market that makes frustrated.
Why they do that?
Is everything just done by exchanges or project itself, and also that makes a clear difference in prices as compared to official price of market that makes frustrated.
Obviously for publicity to attract buyers to raise the value of their stash.
A team behind a coin can't do that without the involvement of the exchange as them faking volume would end in them having to pay % of the volume they created by themselves.
As for the price, no in most cases, the price is not influenced because if you "manipulate" the price you must buy the coins from other sellers, again not a sure profit way.
What most small exchanges and teams do is simply fake the volume of trades.
They do this on small exchanges simply because it's cheaper!
It's one thing to bribe since and one to pay 1000$ to exchngeherexxxvvvmmm.info.com.store
You see that A buys at 3.2, B selles at 3.201 C buys at 3.2 again, but in reality, the actual legit orders which are placed at 3.19 and 3.21 never get executed. Or far easier they execute with high priority some trades at the same prices when the spread is big enough to not touch the real walls.
Of course, exchanges that have a history of faking volumes have more an more advanced scripts but the basics are still the same.
All Bitcoin trade volumes are false, this is because P2P and local bitcoin trades are not included in the published stats. I suspect this is where the largest volumes occur as well during normal trading periods.
localbitcoins publishes volumes for all trades done through their escrow system: https://coin.dance/volume/localbitcoins
if you compare total global volume to just the biggest "legit" exchanges (like coinbase, kraken, bitstamp) it's actually fairly small. i think most people go through the exchanges. it's the most intuitive way to invest, similar to a stock broker.
Most of these exchanges are the ones that created those fake volumes for other market to capture their volume, even at the coinmarketcap they give out these exchanges volume based on their fake sent volume. What mentioning any exchange, there ate exchanges that are special with the fake volume delivering to their operators.
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