Topic: Why do exchanges get away with faking trade volume? - page 3. (Read 422 times)
It's pretty simple: because a lot of those scammy ones are unregulated or regulated in shady countries. And like you said, they can buy the software, and simply modify the UI/UX to their liking to make it "unique" enough. They're just easily getting away simply due to the pseudonymous nature of cryptocurrencies. If we're going to compare them to other finance platforms, of course the finance platforms would easily get screwed because most of them needs banking.
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.
Exchanges with more volumes will attract more traders that is why we see fake volumes but exchanges report fake volumes are easy to find but most of the legit exchanges do it via wash trading so they make it look like legit trading activities going on there.Anyway regulating is not going to be easy because still many governments not aware of their existence so they are taking advantage of it. 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.
With many scams posing as exchanges displaying a UK company license on their site, how come the FCA isn't monitoring them?
Maybe you should ask the FCA then. I honestly doubt that license holds any meaning since I see many wallet acquired the license to run digital wallet services, so not exactly implying that the regulators would monitor their activity. But this thing will gradually slow down when countries begin taking crypto seriously. After all, this industry is still very young, not even 20 years old yet.
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
It wouldn't matter if 199 countries set up the most exquisite regulation in existence, if the 200th doesn't that's where all such places will end up. Most customers won't know any different, or care.
This is a symptom of the medium it lives on. It ain't changing. There'll always be enough morons who run straight into the arms of these fuckholes. The best thing that can happen is that the best platforms keep improving.
This is a symptom of the medium it lives on. It ain't changing. There'll always be enough morons who run straight into the arms of these fuckholes. The best thing that can happen is that the best platforms keep improving.
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.
(....)
Kind of easy, but the difficult here are the users will use your exchange for sure, especially your exchange is kinda new and not popular, especially there are lot of old exchanges that are popular and trusted for how many years by some people.(....)
About this faking the trade volume, it's now become natural and common for some people, because whatever the exchange reported, that's what we believe, right? So, we should not always believe on those numbers.
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.
Compliance to who? but I would agree that it is very easy because no one will audit your trading platform.
That's the problem. There is no regulatory body set up for monitoring cryptocurrency exchanges, or bodies that I know of who have expanded their operations to crypto exchange monitoring within their own country. Just like there are regulators like ASIC and CySEC that monitor their own countries' exchanges, they should at least include crypto exchanges operating in their country.
This brings something to mind. With many scams posing as exchanges displaying a UK company license on their site, how come the FCA isn't monitoring them?
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.
Compliance to who? but I would agree that it is very easy because no one will audit your trading platform.
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 as much as we hate this fraudulent practice, this is open and free market. No central authority to manage this exchanges.
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.
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.
Again, still boils down to crypto being unregulated. And there are people who are going to exploit it as there are no regulations and it is based on "trust". So the best weapon is to really check out the exchange that you want to use.
And there is this website: https://www.bti.live/. You can used it as a reference.
Does anyone else agree that it's way too easy to open an exchange nowadays,
It is not easy to open a safe and reputed exchange, but can be easy for scammers to set up a fake exchange. 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.
There are scam in forex too but no opportunity to create new fiat money as all are centralized and owned by countries. Unlike, cryptocurrencies, they are decentrlaized and can be created by anybody, that is why some are subjected to pump and dump. 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.
That does not mean it is not happening in forex, a lot of scams that happen in crypto is occuring in forex tooSure 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.
Imo, if you are talking about centralized crypto exchanges, they are also well regulated but there are some ways scam can be legit, a good example is the puming and dumping of coin. Aside forex, let me use a well reguated organization for you, have service sim provider scammed you before? They can scam people with as little as $0.1 dollar, why government never done anything?Imo, not that crypto exchanges are not regulated, there are shady scam in forex too and it is everywhere like that. It is we that should be careful.
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.
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.
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