Fake volume in exchanges - page 5. | Bitcointalksearch.org

kwusu

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Quote from: rahimali on August 04, 2018, 01:59:36 PM

I don't think there's much we can do about these exchanges since none of them are regulated. However, you can still try well know exchange like Binance, majority of the community already doing transactions there and they don't have any accusation of infating their volumes on them.

You know it is quite unfortunate that these things are happening. I see it to be as a result of no regulatory body in the crypto market. It has become like you each exchange site has its own way of fixing volumes. Binance is the one i like using and recommend for others too.

hh4mmm

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Quote from: sufiasyl on August 03, 2018, 11:30:17 PM

The key is never to get drawn to the price of the coins. We need to see the demand in order to determine if it is real or a scam. These sort of incidents are sad indeed to witness. The investors need to be on edge to be safe.

you are perfectly right because i have witness such scenario

9jaflick

sr. member

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Quote from: dreamhouse on August 04, 2018, 03:20:22 PM

I think all exchanges do that, especially those formed by Chinese. They are good cheaters as always. Just look at the top 20 exchanges (especially those in altcoins) how many are from them and how many we never heard the names before. It is trivial to create a bot to do auto tradings.

yes I sincerely agree with you, Chinese are something else, I've visited and traded on most of these exchanges, but one funny thing of it all is that, I don't see any reasonable trading going on in these exchanges the 24hr value is always high.

ManaMan

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Quote from: DirectContract on August 01, 2018, 08:38:10 AM

Found an interesting article in which one guy did some datamining on some popular exchanges and their volumes:

https://medium.com/@sylvainartplayribes/chasing-fake-volume-a-crypto-plague-ea1a3c1e0b5e

Apparently a few of these giants are falsifying their volumes. Maybe because a higher market cap would make people think it's a more trustworthy exchange? I don't know if it's really worth going through all of that effort.

Would this have a major effect on the prices? I know we used to see huge differences in prices in the past, but now you won't see much more than a few percent here and there between exchanges.

Of course that this is done to benefit the exchange. From now since Centralized Exchanges are popular you must trust any exchange provider that they give true statistics about their exchange. Since many people are looking at volumes before they decide which exchange they are going to use it makes perfect sense to try to give false data to increase the likelihood of new users joining and staying on the exchange.

dreamhouse

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I think all exchanges do that, especially those formed by Chinese. They are good cheaters as always. Just look at the top 20 exchanges (especially those in altcoins) how many are from them and how many we never heard the names before. It is trivial to create a bot to do auto tradings.

squatter

legendary

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STOP SNITCHIN'

Quote from: InboundMercury on August 04, 2018, 05:11:04 AM

These exchanges are built on a unregulated space with a lot of loopholes in them. So, we cannot really do anything about it. It is an unfair practice and very frustrating for the community but if you follow web articles closely, you'll see that these accusations are mainly against OKEx, Bitfinex and Kraken. However, GDAX and Binance are still reliable for the users as they were more accurate

Maybe GDAX -- I think they mostly play by the book. I've also seen some analysis of Bitfinex trading metrics that suggest they are mostly legitimate too.

But Binance's volume is likely manipulated. I follow lots of traders on Twitter and many people suspect fake volume because of the lack of order book depth. Same accusations you see towards OKEx. And remember, CZ was the mastermind of Okcoin and Okcoin futures trading engines, which were notorious for faking volume. You think he wouldn't work that magic at Binance, too?

abderrazak belkhir

full member

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The scam now is everywhere in the crypto world you must not be surprised if you see somthings like this...i think the crypto world need really people who know this world really and They can punish these traitors

pixie85

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The article focuses on OKex exchange. I have never used it, have you? It's trying to fight for first place in volume with Binance and with the high volume that they have it's really easy to hide some fake trades. Chinese exchanges were doing that in the past and this was one of the reason why they were banned and had to move somewhere else like Hong Kong.

cryptoJJJ

newbie

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Fake volume, gets more people to sign up to trade with the exchange bot. But fake volume is also getting new coins to sign up and pay a heavy signup fee, hoping the exchange will add more volume to their coin.

bartolo

hero member

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Quote from: franky1 on August 01, 2018, 10:07:27 AM

you forgot to add if an exchange only does say 200btc volume a day thats usually only 1btc in fee's. no VC is going to buy shares in the the ownership of an exchange that only makes 1btc a day. so some exchanges fake volumes, not to make a coin look good. but to grab some VC money

Not only that, the higher the volume, the higher the listing fee they will charge for listing any new token or coin in the exchange.

rahimali

newbie

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I don't think there's much we can do about these exchanges since none of them are regulated. However, you can still try well know exchange like Binance, majority of the community already doing transactions there and they don't have any accusation of infating their volumes on them.

12tribes

member

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Whale-like activities are readily possible to manipulate potential investors, push prices of the coins they trade bullish and equally do so to have a large volume appearance. Bots are quite known to repeat activities of a single transaction making it look as real timetransactions, however a careful analysis of the situation shows that this indeed may be a bad turn for crypto and thus give the naysayers what is a long hook to catch the bitcoin and give it a bad name. On the all I think this is only on a few desperate sites.

WolfRisk

newbie

Activity: 75

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Partially disappointing! We should always be aware of such kind of exchanges. We should observe market behavior that will help us decide the right. In crypto world, we should always be dependant on ourselves rather than what others say. Cautiousness is the best key to be successful here.

Beity

newbie

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It’s very irritating for those who faced this problem. But if anyone be careful about that they should avoid this.

TupMan007

newbie

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As far I understand it does not influence the market cap on price straightly. I think higher volume have a number of like all pull towards to new customer. Scammer always try to make a coin appear to be good.

InboundMercury

newbie

Activity: 70

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These exchanges are built on a unregulated space with a lot of loopholes in them. So, we cannot really do anything about it. It is an unfair practice and very frustrating for the community but if you follow web articles closely, you'll see that these accusations are mainly against OKEx, Bitfinex and Kraken. However, GDAX and Binance are still reliable for the users as they were more accurate

sufiasyl

newbie

Activity: 434

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The key is never to get drawn to the price of the coins. We need to see the demand in order to determine if it is real or a scam. These sort of incidents are sad indeed to witness. The investors need to be on edge to be safe.

DirectContract

newbie

Activity: 23

Merit: 0

Quote from: franky1 on August 01, 2018, 10:07:27 AM

Quote from: Coinblaze on August 01, 2018, 09:39:27 AM

This is disturbing, it makes the case for regulated exchanges...

It doesn't affect the market cap or price directly, but higher volumes can have a few effects:

All these new exchanges are looking to attract new customers, so they try to fake their volume to appear higher in lists of top exchanges.

Altcoins too will try to pump up their daily volume to try to appear to be a good and stable coin.

Scammers trying to make a coin appear to be good or bad can generate a steady stream of fake buy/sell to themselves to try to push the price in the direction they want.

The moral of this story is: don't trust the volume!

you forgot to add if an exchange only does say 200btc volume a day thats usually only 1btc in fee's. no VC is going to buy shares in the the ownership of an exchange that only makes 1btc a day. so some exchanges fake volumes, not to make a coin look good. but to grab some VC money

its also not just exchanges. its wallet custodians faking the 'new walet' per day stats to make it seem that its a good VC prospect for advertising income of a nice increasing customer views site

Yeah and the fake growth gives the exchange more chances for expanding out and building its brand in other sides of the industry as well and market themselves on every corner of the web. Next thing you know they could be doing ICOs and making their own coin. Then they give people commission discounts if they use their coin... like Binance.

It's not an immediately negative effect on prices, but it's a long term draw out. Kind of like buybacks on the stock market, they're just inflating their own value, but this way their doing it with hot air instead of real money.

franky1

legendary

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Quote from: Coinblaze on August 01, 2018, 09:39:27 AM

This is disturbing, it makes the case for regulated exchanges...

It doesn't affect the market cap or price directly, but higher volumes can have a few effects:

All these new exchanges are looking to attract new customers, so they try to fake their volume to appear higher in lists of top exchanges.

Altcoins too will try to pump up their daily volume to try to appear to be a good and stable coin.

Scammers trying to make a coin appear to be good or bad can generate a steady stream of fake buy/sell to themselves to try to push the price in the direction they want.

The moral of this story is: don't trust the volume!

you forgot to add if an exchange only does say 200btc volume a day thats usually only 1btc in fee's. no VC is going to buy shares in the the ownership of an exchange that only makes 1btc a day. so some exchanges fake volumes, not to make a coin look good. but to grab some VC money

its also not just exchanges. its wallet custodians faking the 'new walet' per day stats to make it seem that its a good VC prospect for advertising income of a nice increasing customer views site

bob_rushford

jr. member

Activity: 48

Merit: 1

Each exchange has there specific whale traders who are bound to fill in the volumes as per their interest and the trends they want to show. Also bot trading is a practice.

Topic: Fake volume in exchanges - page 5. (Read 1180 times)