Fake Transactions at Bitcoin Exchanges

xypos

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Quote from: Cindy23 on March 15, 2017, 02:48:28 AM

you may be seeing transaction volume as a metric when choosing bitcoin exchanges. But bitcoin insiders reveal that it is an open secret that exchanges generate fake transactions to make themselves look better.
this could be devastating for bitcoin newbies like me. Normally, there are three ways to do so.
Read more about this story at:
http://news.8btc.com/threes-ways-to-generate-fake-transactions-at-bitcoin-exchanges

Interesting article, personally i do believe that at least one of these Chinese exchanges has been involved in the act of volume fixing in the past, simply because there is really no way that one single exchange is able to get 1 million + coins which is basically the entire amount of bitcoins satoshi has got.

But right now the Chinese government is intervening.

This means that the volumes will be down, and therefore there will probably be no volume fixing from now on.

user27

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Quote from: ?? on ??

It occurs commonly in chinese exchanges.They generate fake buy and sell orders to show increased trade volume.Chinese exchanges always try to dump the bitcoin price whereas other exchanges try to show bitcoin price as increased.

OKCoin and Huobi do have pretty exaggerated figures at times that they look artificial and faked. However there is no proof to back them up at this point in time.

I doubt that we will ever find any proof of them either faking volumes or not faking volumes because they are the operators of the site and they are able to provide any information whether false or true to the public, meaning that we can’t accurate decide.

But considering that the chinese government is putting on more restrictions, and keeping an eye actively on these trading places, i would say that there is less chance of volume faking happening.

aardvark15

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Quote from: BrewMaster on March 22, 2017, 11:14:55 AM

Quote from: aardvark15 on March 22, 2017, 10:05:32 AM

Quote from: ?? on ??

It occurs commonly in chinese exchanges.They generate fake buy and sell orders to show increased trade volume.Chinese exchanges always try to dump the bitcoin price whereas other exchanges try to show bitcoin price as increased.

Which exchanges are Chinese exchanges? I have used several different exchanges and I had never heard that they padded their volume, although I know some are dishonest.

since you don't know then you probably have never used them ever before. the exchanges that have Yuan or CNY markets listed in their platform are Chinese.
and the biggest one that i know of is OKCoin and according to bitcoinwisdom.com there is also BTCCChina and their volume used to be ridiculously high.

if you search you will surely find topics about this from that time.

I've never used those. I've used BTC-e which I think is Bulgarian, Poloniex, and Cryptsy. Of course Cryptsy was a scam and shut down with some of my coins.

BrewMaster

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Quote from: aardvark15 on March 22, 2017, 10:05:32 AM

Quote from: ?? on ??

It occurs commonly in chinese exchanges.They generate fake buy and sell orders to show increased trade volume.Chinese exchanges always try to dump the bitcoin price whereas other exchanges try to show bitcoin price as increased.

Which exchanges are Chinese exchanges? I have used several different exchanges and I had never heard that they padded their volume, although I know some are dishonest.

since you don't know then you probably have never used them ever before. the exchanges that have Yuan or CNY markets listed in their platform are Chinese.
and the biggest one that i know of is OKCoin and according to bitcoinwisdom.com there is also BTCCChina and their volume used to be ridiculously high.

if you search you will surely find topics about this from that time.

aardvark15

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Quote from: ?? on ??

It occurs commonly in chinese exchanges.They generate fake buy and sell orders to show increased trade volume.Chinese exchanges always try to dump the bitcoin price whereas other exchanges try to show bitcoin price as increased.

Which exchanges are Chinese exchanges? I have used several different exchanges and I had never heard that they padded their volume, although I know some are dishonest.

Pursuer

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Quote from: ?? on ??

It occurs commonly in chinese exchanges.They generate fake buy and sell orders to show increased trade volume.Chinese exchanges always try to dump the bitcoin price whereas other exchanges try to show bitcoin price as increased.

you can show fake volume but you can not dump bitcoin price because that means you need to spend bitcoin and if you have ever looked at an orderbook on an exchange they are not small orders! the exchange has to dump at least 3000BTC or in their fake Chinese exchange orderbook they have to dump 10,000BTC to make the price go down only 10%

what they do, or better say did, is just reporting fake volumes. for example the daily volume was 1000BTC but they reported it as 5000BTC and it is mostly because of competition and also a part of it came from their 0 fee policy.

it is worth adding that all of this is over now since PBoC is monitoring their every move. so you can expect a much healthy market over in China.

valta4065

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That's not... Really fake transactions aren't just for the fun
It's a way for traders to impact the market.
It's there way to tell "hey, I think market should go this way" ^^

iamTom123

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Quote from: mobnepal on March 15, 2017, 05:25:31 AM

This is well known bitter fact about bitcoin trading platforms specially those based on china. This is one of the factor that causes too much volatility in bitcoin price and this have also triggered recent investigation of Chinese bitcoin exchanges by PBOC.

This issue could have been minimized or even stopped had there been regulations imposed on matters related to Bitcoin and regulations of course call for regulators something which Bitcoin is an anathema of. Bitcoin and regulations could not see face to face because Bitcoin was born partly because in response to the cry against the regulations imposed by any government-created agencies. Having said that, the problem is that people will always be motivated by profits and self-interests as part of our weak human nature and Bitcoin as we see it now can even be magnifying our human nature's greed pattern.

xypos

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Quote from: Cindy23 on March 15, 2017, 02:48:28 AM

you may be seeing transaction volume as a metric when choosing bitcoin exchanges. But bitcoin insiders reveal that it is an open secret that exchanges generate fake transactions to make themselves look better.
this could be devastating for bitcoin newbies like me. Normally, there are three ways to do so.
Read more about this story at:
http://news.8btc.com/threes-ways-to-generate-fake-transactions-at-bitcoin-exchanges

The things that they listed were obvious.

Like you could literally be a newbie at bitcoin and you could have written up the same article. I mean yeah these are the ways to fake volume but that article doesn't mean anything because they haven't got any proof that any of the no fee exchanges operating in china are actually faking their volume.

The admins are ultimately in control here, as they own the site. If they post fake logs then nobody can really find out.

Anyways, personally I don't believe that Huobi or OKCoin actually fakes their volumes. I believe that there is no need to, even though much of the volume might be heavily inflated from users trading back and forth, as there is no fees involved.

batang_bitcoin

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What's new about China? They are masters for everything, for reverse engineering, faking data's, faking products and of course with bitcoin transactions. As long as it is going to get a lot of attraction and possibly can get people to invest and use them and put money to them. They will surely do everything for it, China's god is famous, named money.

pooya87

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fake transactions are different from fake volume and what exchanges do is reporting fake volume. it is just statistics that they are reporting to be higher in ranking among other counterparts. and the only effect this action of their can have is a higher rank among other exchanges and be for example number 1 or 2,... and also it may end up biting them in the ass when the tax guys came looking for their cut of the deal.

joshy23

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Quote from: bamboylee on March 15, 2017, 10:06:59 AM

I wonder which exchanges practices this fraud. All I know is that Chinese exchanges are guilty of this and that is why PBOC are investigating them. And if other exchanges are doing this as well, how can we trust the price we are right now?

Yes, that's why the PBOC investigated those Chinese exchanges and found out that they are doing fake transaction volumes and offering 0 fees before. This started an arms race between all the domestic exchanges, heralding in an era of zero fees from which China has never returned. I think BTCC and OKCoin is involved.

giveen

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Wow i never heard about this in exchanges before while if you see this still happens in those doubling sites as they show fake transaction. Best thing to do is google about the site and check it's reviews and then only use it. Or i can suggest you a few if you are buying using bank then use bitfinex , if with credit card then coinmama , if buying with altcoins then shapeshift and if you want to buy using pm , ok pay then use changer.org

bamboylee

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I wonder which exchanges practices this fraud. All I know is that Chinese exchanges are guilty of this and that is why PBOC are investigating them. And if other exchanges are doing this as well, how can we trust the price we are right now?

audaciousbeing

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Quote from: Cindy23 on March 15, 2017, 02:48:28 AM

you may be seeing transaction volume as a metric when choosing bitcoin exchanges. But bitcoin insiders reveal that it is an open secret that exchanges generate fake transactions to make themselves look better.
this could be devastating for bitcoin newbies like me. Normally, there are three ways to do so.
Read more about this story at:
http://news.8btc.com/threes-ways-to-generate-fake-transactions-at-bitcoin-exchanges

Hardly will one see any site that is entirely truthful. They will want to use one way or the other to entice cclients to patronise their services. Its even happening in the real world where companies will paint themselves as very solvent and standing firm whereas they are wallowing under bank debts. In other to be careful, one just needs to patronise those sites that have stand the test of time and have even proved themselves worthwhile over the years rather than those who came into existence just last month and have started claiming large volume of transactions.

michkima

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Quote from: Red-Apple on March 15, 2017, 09:15:36 AM

Quote from: Cindy23 on March 15, 2017, 02:48:28 AM

you may be seeing transaction volume as a metric when choosing bitcoin exchanges. But bitcoin insiders reveal that it is an open secret that exchanges generate fake transactions to make themselves look better.
this could be devastating for bitcoin newbies like me. Normally, there are three ways to do so.

why can it be devastating for bitcoin newbies!
the fake volume is fake, it is not affecting the market or even the orderbook. as long as the exchange platform doesn't show fake orders in the orderbook and prevent people from selling or buying from those you are good. and there is nothing to worry about.

Quote from: Cindy23 on March 15, 2017, 02:48:28 AM

if you have something to say, say it here. or if you found the article good then summarize the good part here in your post and tell us your thought. if we wanted to read articles we could have done it ourselves.

It actually affects the trading of bitcoins when there are fake volumes or any data that is manipulated it will have an adverse effect on the trading habits of traders and as well as affect their decision when they say those data. We cannot rule out that this fact, if we do people will really believe what they see and think that bitcoins is really going up or down based on the volume compared to prices.

Red-Apple

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Quote from: Cindy23 on March 15, 2017, 02:48:28 AM

you may be seeing transaction volume as a metric when choosing bitcoin exchanges. But bitcoin insiders reveal that it is an open secret that exchanges generate fake transactions to make themselves look better.
this could be devastating for bitcoin newbies like me. Normally, there are three ways to do so.

why can it be devastating for bitcoin newbies!
the fake volume is fake, it is not affecting the market or even the orderbook. as long as the exchange platform doesn't show fake orders in the orderbook and prevent people from selling or buying from those you are good. and there is nothing to worry about.

Quote from: Cindy23 on March 15, 2017, 02:48:28 AM

if you have something to say, say it here. or if you found the article good then summarize the good part here in your post and tell us your thought. if we wanted to read articles we could have done it ourselves.

Dimelord

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Quote from: Cindy23 on March 15, 2017, 02:48:28 AM

you may be seeing transaction volume as a metric when choosing bitcoin exchanges. But bitcoin insiders reveal that it is an open secret that exchanges generate fake transactions to make themselves look better.
this could be devastating for bitcoin newbies like me. Normally, there are three ways to do so.
Read more about this story at:
http://news.8btc.com/threes-ways-to-generate-fake-transactions-at-bitcoin-exchanges

Its quite familiar with chinese exchanges.They are always blamed for generating fake transactions to show their trade volume huge.

ImHash

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Why do you care about inside exchange trades? what really matters is the main chain transactions with actually the recommended fees and also mined by more than 1 pool. and as it seems everyone after a few hours of inspecting the exchange's activities could figure out that they're making fake transactions. so the joke is on them.

mindrust

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These recent pumps may have something to do with those exchange fake pumps. We may very well be in a Gox v2.0 phase at the moment.

It is all the same. Bitcoin is rising, alt coins are rising... NMC rises first, then out of no where, PPC rises. And then NVC takes its turn. DSH and ETH are already reached the moon. It feels like exactly the same when it was in 2013.

If Poloniex is behind those pumps... What do ya think may Polo be the...

next Gox?

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