According to a Bankless Times study, the cryptocurrency industry continues to suffer from fake trading volumes. Exchanges and projects inflate volumes in order to climb higher in the ratings.
Analysts of the publication note that transactions for the sale and purchase of an asset are often made on the same platform. But more interesting is the factor of overvaluation of trades in transactions with stablecoins. According to BanklessTimes experts, the volume is generated, but in fact the funds remain on the site and do not change ownership. However, this is a standard practice for any stock trading, including currency trading on Forex.
Taking into account all such methods, analysts called more than half of the volume of Bitcoin trading fake.
“It’s hard to talk about cryptocurrencies and not think about bitcoin. At the same time, there is a concern that a large part of the daily trading volume is falsified. This calls into question the legitimacy of the exchanges and the reliability of the data,” said BanklessTimes CEO Jonathan Merry.
At the end of August, Forbes reported significant falsification of trading volumes by cryptocurrency exchanges. Forbes analysts spoke of an overestimation of the figure by the same 51%.