Faking a trading volume has long been a scheme for exchanges since it is consistent with price manipulation and could influence a trader's perception over the overall "activity" of an exchange - making it more attractive!
This also could influence traders sentiment towards a particular cryptocurrency, in this case, with Bitcoin which in effect could lure traders or projects to list on that particular exchange. Finally, this scheme is tantamount to duping traders since it is also designed to generate more profit in behalf of the exchange itself and I feel the crypto-community should do an initiative to discourage it.
Topic: The vast majority of trading volume was faked. - page 2. (Read 302 times)
That a big part of the trading volume reported by exchanges are actually just manufactured can be a cause of concern because this will have many repercussions as to the future of this expanding cryptocurrency industry. Many exchanges can indeed be involved in wash trading and that is something that can really be discouraging. It is ironic to realize that in that first article, the report was submitted by Bitwise the same firm whose ETF application was recently denied by SEC. They must have a victim of their own truthful reporting. The biggest problem is concentrated on unregulated exchanges as they seem to be thinking that they can do anything with the data without facing legal consequences, though we could not for sure that regulated outfits are not also doing the same thing to a certain degree. Now, I am wondering: What can we do about this sham and what should regulators do to stop this non-sense?
This is one problem in these exchanges, and without solid regulatory boards, these exchanges can do anything as they please to lure various altcoins to their exchange, profiting a lot of money. They does it to increase their trading volume and activity, thus making it look like their exchange is highly active, has a lot of user base, and therefore profitable, which is not the true case. Only few exchanges are honest in reporting their trade true trading volumes and these are the ones you can really trust.
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