Topic: Why do exchanges get away with faking trade volume? - page 2. (Read 400 times)
This will change in some time. Right now regulators are just catching up with this wild west and we really don't care about wash trading enough to even avoid such exchanges. It's like an open secret, almost everyone has been doing all along it but we have focused on exit scams / ico scams and stuff like that.
Wait. Who makes investors invest their money in fraudulent projects and exchanges of this kind?
Answer - Nobody.
You yourself decide where to invest your money. Nobody can deceive you if you yourself do not believe in deception.
There are hundreds of such exchanges with varying degrees of truthfulness, but it depends only on you whether you get into this ass or not.
If investors were smarter, these kinds of exchanges would never stand a chance.
But sadly people still invest in these scam exchanges. People are so greedy that if those exchanges offer some bonus etc, people will rush and invest in those exchanges. Offering zero trading fee is another reason people trade at those exchanges. Answer - Nobody.
You yourself decide where to invest your money. Nobody can deceive you if you yourself do not believe in deception.
There are hundreds of such exchanges with varying degrees of truthfulness, but it depends only on you whether you get into this ass or not.
If investors were smarter, these kinds of exchanges would never stand a chance.
I have wondered this too myself on why exchanges playing this deceit of falseness with trading volume are left unpunished. It's a burden on the entire crypto space.
Exchange are doing this to attract traders to use their platforms, you will only realized this once you are already being trapped, there's a big need of doing your research about both the projects and the exchange that you'll going to use before you take your chance to avoid losing your money.
Quote
Yes, I know the industry isn't regulated yet (as it should be, apart from the KYC stuff), however I think something critical should be done in stopping exchanges from displaying fake trading volume by exposing and sanctioning defaulters.
It's a good call for every traders and investors to avoid this kind of activities around exchange who are actively faking their volumes, without any takers this exchange will start to realized if they want to stay in the business they need to work with what traders and investors needs.
Quote
If this is done, it will go a long way in restoring investors' and traders' confidence in the industry like we have with Forex Trading.
Correct, exchange that being tag doing this will be avoided by traders, it will be a big damage to their service.
I have wondered this too myself on why exchanges playing this deceit of falseness with trading volume are left unpunished. It's a burden on the entire crypto space. Yes, I know the industry isn't regulated yet (as it should be, apart from the KYC stuff), however I think something critical should be done in stopping exchanges from displaying fake trading volume by exposing and sanctioning defaulters. If this is done, it will go a long way in restoring investors' and traders' confidence in the industry like we have with Forex Trading.
The question is who will regulate them ? Many of this exchange are new exchange platform that exchange listing of shitcoin for new traders but get stuck in continuous listing of bad project. They also fake volume to rank higher in coinmarketcap and other crypto trading monitoring sites. Unless people stop patronizing them, they will never stop this. Some of them don't even have physical address which make it difficult to even sue or get then regulated
I think they do not care eve if the coin is shit or not. What matters to them is that they are getting payments from the owners of those coins or tokens.
The more tokens that will be listed on their exchange, the more money they can get.
Fake volumes are used by them to attract traders to invest on that particular coin.
It's illegal but it's hard to regulate them these days...
Wait. Who makes investors invest their money in fraudulent projects and exchanges of this kind?
Answer - Nobody.
You yourself decide where to invest your money. Nobody can deceive you if you yourself do not believe in deception.
There are hundreds of such exchanges with varying degrees of truthfulness, but it depends only on you whether you get into this ass or not.
If investors were smarter, these kinds of exchanges would never stand a chance.
Answer - Nobody.
You yourself decide where to invest your money. Nobody can deceive you if you yourself do not believe in deception.
There are hundreds of such exchanges with varying degrees of truthfulness, but it depends only on you whether you get into this ass or not.
If investors were smarter, these kinds of exchanges would never stand a chance.
legendary
Activity: 2380
Merit: 4265
eXch.cx - Automatic crypto Swap Exchange.
but in my opinion it is way too easy to set up an crypto exchange without worrying about the legal aspects. There should be more scrutiny and regulation around exchanges.
Not just your opinion but that's the truth, we're not in an industry dominate by the government and few big power houses that detect how the industry should be operated or is that want you were hoping the crypto industry.would be? Sorry to disappoint but we're in a free market, although weren't seeing much of decentralization thesw days but that's what the industry was built for. The scammers are taking advantage of this feature to scam gullible Investors off their capital but that's all on them and if I was to fall victim that's also on my for not doing proper research.
The OG in the industry foresaw all these distractions coming that's why they advocated for the abstaince of patronizing any garbage advertising themselves as some world class problem solvers using blockchain technology so if you fall for scam project using scam exchanges that's your problems. Why use new exchange you have no idea about when the current is serving you right?
That's the limbo we're all facing. Many crypto sectors could get away without complying to any regulations because there's no requirement but then we users should know better right? And that's why forums like these exist.
This is not to say that all platforms are meddling with numbers and such but the prevalence is high. Consumer protection and licensing might unravel a new hole shite pile of trouble at least when done traditionally, but this is something many finance sectors are dealing with - its not easy.
The bottom line is to always be protective over your money no matter in which platform it goes into. Oh yeah, and read the small prints!
This is not to say that all platforms are meddling with numbers and such but the prevalence is high. Consumer protection and licensing might unravel a new hole shite pile of trouble at least when done traditionally, but this is something many finance sectors are dealing with - its not easy.
The bottom line is to always be protective over your money no matter in which platform it goes into. Oh yeah, and read the small prints!
We users should definitely know better and I know from my own personal experience that it is possible to be educated. I spent about THREE whole years being misinformed about Bitcoin before an accident and recovery gave me all the time in the world to actually sit down, read and understand it better. I felt like an idiot, but you know, we learn. And hopefully I've made the difference for a lot of people also (not by telling them about Bitcoin, but helping those seeking answers find them).
Always take responsibility, that is 100% the key!
Does anyone else agree that it's way too easy to open an exchange nowadays, you just assemble a team and buy some trading platform software from a third party and set up your site, compliance be damned. And then some of them do things like listing scamcoins that can be predicted to become worthless, ripping off investors. If a stock were to do this, their owners would go to jail.
The only solution is strict regulation for exchanges to operate and taking a bank guarantee while listing the coins so that the developers will not dump the coins and run away. It is not that hard to start an exchange and anyone with basic knowledge of coding can come up with an exchange.And then other exchanges blatantly misreport their trading volume as much higher than it actually is. If a regulated forex platform would to do this, they would be heavily fined.
Almost all of the exchanges in the cryptocurrency market shows fake volumes to attract the user base and as long as there is no regulation there is nothing you can do about it. There should be strict regulations for exchanges and for new projects that are raising money and there should be strict monitoring on how they are making use of that money.
That's because crypto market is not really that heavily regulated. You wont need any permits or wont really be that necessary for someone to create their own platform.
Yeah and like what OP have mentioned, You just need to form a team and buy 3rd party
system, with decent fund you are good to go.
This is why people should really be careful on because we know that once transactions had been done like depositing then it cant be reverted nor can be traced
Research and find more information about exchange that you'll going to use, it's frustrating
losing your money in such kind of act.
when the owners of such exchange tends out to ran all of the investors money and that's one of the few main reasons.
Pain in the ass once the owner run away and bring all the money with them, no regulation
and no trace, they will just disappear.
Setting-up is easy but earning trust from users is hard so if you just want to set-up a fly-by-night exchange, you can always do so but don't expect that many users will just deposit blindly. And most crypto users are now smarter than before because of these hacking incidents as well as crypto exchanges shutting down their business, so they are really careful in using exchanges especially those small and low volume exchanges. Wash trading is common among them but you will know if they are doing it once you are familiar with the trading patterns and background of the coin.
That's because crypto market is not really that heavily regulated. You wont need any permits or wont really be that necessary for someone to create their own platform.
Yeah and like what OP have mentioned, You just need to form a team and buy 3rd party
system, with decent fund you are good to go.
This is why people should really be careful on because we know that once transactions had been done like depositing then it cant be reverted nor can be traced
Research and find more information about exchange that you'll going to use, it's frustrating
losing your money in such kind of act.
when the owners of such exchange tends out to ran all of the investors money and that's one of the few main reasons.
Pain in the ass once the owner run away and bring all the money with them, no regulation
and no trace, they will just disappear.
Does anyone else agree that it's way too easy to open an exchange nowadays, you just assemble a team and buy some trading platform software from a third party and set up your site, compliance be damned. And then some of them do things like listing scamcoins that can be predicted to become worthless, ripping off investors. If a stock were to do this, their owners would go to jail.
And then other exchanges blatantly misreport their trading volume as much higher than it actually is. If a regulated forex platform would to do this, they would be heavily fined.
Sure forex has their own share of scam platforms but in my opinion it is way too easy to set up an crypto exchange without worrying about the legal aspects. There should be more scrutiny and regulation around exchanges.
Thats because cryptomarket is not really that heavily regulated.You wont need any permits or wont really be that necessary for someone to create their own platform.And then other exchanges blatantly misreport their trading volume as much higher than it actually is. If a regulated forex platform would to do this, they would be heavily fined.
Sure forex has their own share of scam platforms but in my opinion it is way too easy to set up an crypto exchange without worrying about the legal aspects. There should be more scrutiny and regulation around exchanges.
This is why people should really be careful on because we know that once transactions had been done like depositing then it cant be reverted nor can be traced
when the owners of such exchange tends out to ran all of the investors money and thats one of the few main reasons.
It is not that it is very easy to open an Exchange, what happens is that Exchanges are a great business model, the advantage is that you can see all the positions, stops, resistances and supports, having that information is very easy to do some win-win movements, and not counting the different plans offered to Market Makers.
Does anyone else agree that it's way too easy to open an exchange nowadays, you just assemble a team and buy some trading platform software from a third party and set up your site, compliance be damned. And then some of them do things like listing scamcoins that can be predicted to become worthless, ripping off investors. If a stock were to do this, their owners would go to jail.
i actually don't mind. i've been around in this space long enough to easily sniff out scam exchanges and fake volume. i am more so mystified at how noobs always seem to end up on these unknown scam exchanges that are clearly faking volume and have no real liquidity. why? how? why don't they do any research on the exchanges they are entrusting their coins to?
it's too bad we live in a nanny state society where investors feel no need to do due diligence in their business relationships and investments. tbh, the truth is that most noobs need to get scammed once or twice before learning their lesson. there's no way around it IMO.
Exchanges do not directly report fake volume rather they use bot trading which increases their volume at the end of the day.
lots of exchanges completely fake volume and liquidity. they spoof orders on both sides and use algorithms to multiply the reported volume vs actual volume traded.
exchanges can't easily use bots to pump volume with real trades. that's a very quick route to insolvency since real traders would be eating up their "fake" liquidity.
Exchanges do not directly report fake volume rather they use bot trading which increases their volume at the end of the day. However, there's none much of regulatory body who could look at deeply.
However, there's metric in crypto tracking sites like coinmarketcap by which one can easily detecr whether exchange is using fake trading.
However, there's metric in crypto tracking sites like coinmarketcap by which one can easily detecr whether exchange is using fake trading.
If a stock were to do this, their owners would go to jail.
Indeed they would, but I think it would be a lot harder to try to set up a fake stock brokerage these days than it would be for a crypto one. Stock market investors tend to stick with the brokers with big names and long track records, and I don't think many of those investors would be willing to try out a new broker. Also I think these fly-by-night crypto exchanges operate out of countries where there's little regulation, which is why they can get away with some of the shit they pull. It amazes me that exchanges like Yobit are still around, given some of the garbage coins they offer, some of which probably don't even exist. Obviously no government regulator is paying attention to them, or they don't care.
And then other exchanges blatantly misreport their trading volume as much higher than it actually is. If a regulated forex platform would to do this, they would be heavily fined.
Again, I think this is a function of what country the exchange is operating out of. It's also partly a problem of the websites that report that volume data, like CMC and coingecko. Doesn't seem like there's a lot of fact checking going on.Crazy that crypto is over ten years old and we're still kind of in the wild west days as far as these things go. I don't think it's going to stay like this forever, but it sure as hell is interesting to see while it's happening.
It is too easy. And that is a problem, and I think we are always faced with the dilemma all across the sectors in crypto. Trading, exchange, gambling, mixing, basically any service, not only trading...
What should we do? Fight for more consumer protection, so more licensing and more regulation? But Huobi, Bittrex, Coinbase, are all regulated just in different jurisdictions and all have been or are guilty of wash trading.
That's the limbo we're all facing. Many crypto sectors could get away without complying to any regulations because there's no requirement but then we users should know better right? And that's why forums like these exist. What should we do? Fight for more consumer protection, so more licensing and more regulation? But Huobi, Bittrex, Coinbase, are all regulated just in different jurisdictions and all have been or are guilty of wash trading.
This is not to say that all platforms are meddling with numbers and such but the prevalence is high. Consumer protection and licensing might unravel a new hole shite pile of trouble at least when done traditionally, but this is something many finance sectors are dealing with - its not easy.
The bottom line is to always be protective over your money no matter in which platform it goes into. Oh yeah, and read the small prints!
Does anyone else agree that it's way too easy to open an exchange nowadays, you just assemble a team and buy some trading platform software from a third party and set up your site, compliance be damned. And then some of them do things like listing scamcoins that can be predicted to become worthless, ripping off investors. If a stock were to do this, their owners would go to jail.
And then other exchanges blatantly misreport their trading volume as much higher than it actually is. If a regulated forex platform would to do this, they would be heavily fined.
Sure forex has their own share of scam platforms but in my opinion it is way too easy to set up an crypto exchange without worrying about the legal aspects. There should be more scrutiny and regulation around exchanges.
There are forex scam platforms! Most of them work as a ponzie and pyramid schemes. And they usually end up scamming money from people and then running away. Most of them do get caught and receive penalties and punishments. And then other exchanges blatantly misreport their trading volume as much higher than it actually is. If a regulated forex platform would to do this, they would be heavily fined.
Sure forex has their own share of scam platforms but in my opinion it is way too easy to set up an crypto exchange without worrying about the legal aspects. There should be more scrutiny and regulation around exchanges.
The same thing happens in crypto exchanges. They make a fake exchange and report fake volumes. They list shitcoins because they get paid for it. It is the responsibility of the user to choose a legit platform and avoid those scam exchanges.
It is too easy. And that is a problem, and I think we are always faced with the dilemma all across the sectors in crypto. Trading, exchange, gambling, mixing, basically any service, not only trading...
What should we do? Fight for more consumer protection, so more licensing and more regulation? But Huobi, Bittrex, Coinbase, are all regulated just in different jurisdictions and all have been or are guilty of wash trading.
And what precisely are the boundaries for wash trading anyway?
Protect all you want but until people actually stop using meaningless numbers to make their decisions (and we know people are dumb), I feel it's all pointless.
You'll always be lagging if you play that game. Better to educate, spread awareness, disseminate information, weed out misinformation. Support good data, flag bad ones.
Can't save all the idiots.
What should we do? Fight for more consumer protection, so more licensing and more regulation? But Huobi, Bittrex, Coinbase, are all regulated just in different jurisdictions and all have been or are guilty of wash trading.
And what precisely are the boundaries for wash trading anyway?
Protect all you want but until people actually stop using meaningless numbers to make their decisions (and we know people are dumb), I feel it's all pointless.
You'll always be lagging if you play that game. Better to educate, spread awareness, disseminate information, weed out misinformation. Support good data, flag bad ones.
Can't save all the idiots.
...
And then other exchanges blatantly misreport their trading volume as much higher than it actually is.
It was a big attraction for any exchanges. Huge trading volume exchanges are what traders had looking at this time and it is very unfortunate how these exchanger's owners want to take that opportunity and to lie people around. It is to imagine how money works, paid those reviews just to be good to look at but behind that reviews, it finds different from the actual scenario. That is why I don't rely on reviews but rather to try and to find out. And then other exchanges blatantly misreport their trading volume as much higher than it actually is.
Sure forex has their own share of scam platforms but in my opinion it is way too easy to set up an crypto exchange without worrying about the legal aspects. There should be more scrutiny and regulation around exchanges.
Well, that regulation will give some help to stop these fake volume and illegalities but I don't know how it affects the market reputation since almost all exchangers do that, even those reputable exchanges may have that kind of troubles. Jump to: