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Title: Binance could be Wash Trading Latest Statistics Show Post by: Danumsigwasan on October 25, 2019, 11:53:26 PM https://i.imgur.com/IrhfmMm.png Binance’s apparently squeaky clean record from the often maligned Blockchain Transparency Institute (BTI) could be under threat as yesterday’s (October 23rd) of trading appear to show wash trading from the exchange. With volatility being prevalent in Bitcoin’s price this has been seen in the trading volumes. Bitcoin has fallen, most clearly on the 25th of September and another drop in price on October 23rd at around 12:40pm UTC. That exchange is Binance and the vast differences have led to suggestions that the exchange is participating in wash trading. Binance had an insurance fund over 10mn USD (as of 23 Oct 2019) and their latest daily trading volume passed 0.8bn USD. This is different to other exchanges, so lets look closer at the mounting evidence that Binance was practicing wash trading. Bitcoin price volatility is usually seen in the statistics of exchanges. Most derivative exchanges like Huobi and Bitmex saw similar statistics. Yet one exchange has been largely different to the others. The case for Binance Wash trading As previously mentioned, exchanges usually see a shift in trading volume when the market is volatile.For example, OkEx saw its BTC spot price decline by 5% within the initial 4 minutes session on October 23rd and the quarterly Futures contract, dumped by 6.2% during the same time window. The figures show below, OkEx, Bitmex and Huobis trading figures for the price drop on the 25th September and 23rd October showing a trading volume shift. Coincidentally, they are all fairly similar and vast. https://i.imgur.com/hmBjWex.jpg OKEX https://i.imgur.com/sRY2w0G.jpg Bitmex https://i.imgur.com/2TD2IsZ.jpg Huobi Yet, Binance figures for the dates of Bitcoin price drops the trading differential is not as large or remotely similar. The October 23rd date illustrates this pertinently. https://i.imgur.com/t413M8l.jpg BitMex This is without a doubt exhibit A for the wash trading claim, bt the evidence does not stop there. The proof only increases when you look at the data for a 4 hour period. https://i.imgur.com/gXINLrz.jpg OKex https://i.imgur.com/EHsvmQZ.jpg Huobi https://i.imgur.com/8eAFilH.jpg Binance The statistic in terms of Bitcoin traded remains largely similar between Bitmex (30K-100K), Huobi (20K-70K) and OkEx (20K-80K). Binance, on the other hand, is oddly stable and is far lower at just 5K. The pattern is also different. A closer look at order book depth also brings up issues. As the figure below shows, BitMex had a quote size around 100 BTC on average ( [bid size + ask size] / 2), OKEx around 60 BTC while Binance was merely less than 2.5 BTC. https://i.imgur.com/YMmFZjv.jpg Bitmex Therefore, with this statistic in mind, how can OkEx and Binance’s futures trading volume have Binance showing a greater amount yet their order book be less? Some would say this is a clear indication that Binance had washed some trading off the books. https://i.imgur.com/UrAyfnF.jpg OKEx https://i.imgur.com/gTh8UiW.jpg Binance Conclusion We will have to wait and see the verdict from the Blockchain transparency institute (BTI), a for profit company who listed a number of exchanges as wash traders. There are certainly some questionable statistics there though. What do you guys think? Let us know in the comments below. Source of article: https://www.asiacryptotoday.com/binance-could-be-wash-trading-latest-statistics-show Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: FantasyGold on October 25, 2019, 11:57:02 PM Honestly, I don’t know what to say.
It’s too complicate thing for ordinary person like me to understand… Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: Freddy11 on October 26, 2019, 12:06:36 AM I don’t like Binance whatsoever, especially with their recent actions. But this is criminal to say the least!!!
Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: KYCbench on October 26, 2019, 12:10:01 AM Interesting, but I don’t know how much reality is there in this?
Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: Andrew Parker on October 26, 2019, 12:18:53 AM Binance must answer about this, as this is serious allegations.
Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: Candycrush1129 on October 26, 2019, 12:23:57 AM With how Binance is taking users for granted, I don’t think they care anymore.
So, I am not surprised. Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: ChainCreator on October 26, 2019, 12:37:26 AM I won’t really say much, as unless these are rumors, I will not react.
Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: BlokbizICO on October 26, 2019, 12:48:57 AM Too early to say, there are no clear evidences about this. I am not an expert, but I don’t know how to be sure about this…
Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: royaltycoin on October 26, 2019, 12:49:52 AM Unbelievable!! I am stunned with reading this. I still can’t believe Binance could do something of this level
Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: minairia3 on October 26, 2019, 12:54:59 AM Nice analysis and clearly depict a good wash trading. I dont know what to say and can't say if the whales are the one playing with it or the exchange itself. Ive been binance user ever since and I like how their market works. It's just a good sight of you mate regarding this, Im interested to know what will be the feedback of Binance once they saw this issue you've been shown us.
Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: makishart on October 26, 2019, 01:44:47 AM I agreed with your last point and it seems like that almost all of the major exchange sites are doing wash trading. Binance must have a lot of order book. this can be a very strong evidence about that. I feel something fishy with binance and another user has already revealed the manipulation in the regular token burn that has already made by binance recently.
Wash trade can't be avoided. Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: CjMapope on October 26, 2019, 03:31:19 AM interesting catch, ya i think its pretty normal
im not a big trader, is there anything bad that can come from this? i know whales can use it to make market moves, but thats just part of the game, no? remember most normal market manipulation is not illegal in crypto, YET : / Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: Yaunfitda on October 26, 2019, 04:16:13 AM So let's see if Blockchain Institute can catch this one when they release their next year's report.
It's gonna be pretty damaging if indeed if this is true based on your observation and analysis. Blockchain Institute has access to their API's to make such report. Binance reportedly making billion dollars already (accumulated), so it make sense if they have been doing this but wasn't catch at all. Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: DaMut on October 26, 2019, 07:01:53 AM interesting catch, ya i think its pretty normal im not a big trader, is there anything bad that can come from this? i know whales can use it to make market moves, but thats just part of the game, no? remember most normal market manipulation is not illegal in crypto, YET : / Wash trading is not normal and illegal thing to do, it is prohibited because it can mislead the investors from knowing the real activity of users on the exchange and manipulating the market. That is true manipulation is part of the game, but we should not forget manipulation is illegal and if you get caught doing it you will get a penalty and might be arrested. Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: TheUltraElite on October 26, 2019, 07:34:54 AM Binance is one of the top exchanges out there so this is not a surprise to anybody. However every exchange out there is no regulated and no SEC-equivalent to keep an eye on them. So if they are was trading then they will be doing it and will continue doing so unless someone grabs them at the throat.
With the use of crypto such incidents are more common. But the article posted here has a bit of suspicion in it to be credible enough. It may be just propaganda news trying to pull people away from Binance. What I mean is that wash happens on all other exchanges too. Today its Binance tomorrow it can be some other CEX. A large wash traded volume is not a good thing but it is like a necessary evil here. Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: Herbert2020 on October 26, 2019, 08:32:38 AM all these companies are bullshit, i don't put any kind of value in the statistics and the reports they come up with. they are just there to make money and it is easy to bribe them to publish anything that you want.
as for Binance, it is some good work you did here. all exchanges are doing wash trading and all kinds of other fake and shady things behind the scenes. some of them are better at hiding it than others though, specially one like Binance has proven they are so good at it. Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: Patrix_1 on October 26, 2019, 11:19:02 AM Every single exchange is doing wash trading and I would not wonder if the most popular exchange is doing the same. I do not really care about wash trading, as soon as Binance management is handling hacks by restoring all the loses.
Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: masterrex on October 26, 2019, 11:41:39 AM Well im a Binance user since 2017 until now! Base on that statistics im not surprise, Since most of all so called big exchange has doing that I dont think thats still relevant today, There were lots of exchange to choose from so why just single out Binance for that matter, Wash trading are exist in every cryptocurrency exchange thats my opinion.
For the better relief let those relevant audit firm do the check up! Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: lobat999 on October 26, 2019, 02:34:08 PM Unless otherwise Binance will allow an independent third party audit on its trading platform, its source codes and internal records, the public will never cease to allege that the exchange is indeed doing wash trading since its a common practice nowadays among exchanges.
Now I feel like the Government or any other entity that has the power to do it might intervene in behalf of the community. :-X Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: Silberman on October 26, 2019, 04:17:34 PM interesting catch, ya i think its pretty normal Maybe I am wrong but those laws should apply to cryptocurrency exchanges as well, if we believe cryptocurrencies are a way to exchange value then it is fair to assume all the laws that could apply to the forex and stock market should apply to this market as well, if this is true then Binance could get in trouble, but I am more worried about what this means for the price of bitcoin, the last incredible increase in the price of bitcoin was the result of the manipulation of Binance and other exchanges?im not a big trader, is there anything bad that can come from this? i know whales can use it to make market moves, but thats just part of the game, no? remember most normal market manipulation is not illegal in crypto, YET : / Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: BChydro on October 26, 2019, 04:27:00 PM Unless otherwise Binance will allow an independent third party audit on its trading platform, its source codes and internal records, the public will never cease to allege that the exchange is indeed doing wash trading since its a common practice nowadays among exchanges. If you are doing something illegal and claim that it is a common practice then they will be held accountable for the actions but Binance letting an independent party to audit without any government or court intervention is highly unlikely as they are registered in Malta.Now I feel like the Government or any other entity that has the power to do it might intervene in behalf of the community. :-X It is a Federal issue and if they are doing wash trading and if they are caught doing so they will be getting huge fines but the fact is they are registered in Malta and i do not think that any investigation will be conducted.Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: lobat999 on October 27, 2019, 12:10:12 AM Unless otherwise Binance will allow an independent third party audit on its trading platform, its source codes and internal records, the public will never cease to allege that the exchange is indeed doing wash trading since its a common practice nowadays among exchanges. If you are doing something illegal and claim that it is a common practice then they will be held accountable for the actions but Binance letting an independent party to audit without any government or court intervention is highly unlikely as they are registered in Malta.Now I feel like the Government or any other entity that has the power to do it might intervene in behalf of the community. :-X It is a Federal issue and if they are doing wash trading and if they are caught doing so they will be getting huge fines but the fact is they are registered in Malta and i do not think that any investigation will be conducted.Being registered in Malta doesn't mean Binance will have immunity from lawsuits or any form of investigations. The U.S. Government, being in good terms with the Malta Government not to mention its existing extradition treaty can always exert pressure on Malta if the need warrants it. Aside from that, Malta also cooperates with other nations including the U.S. on various treaties and agreements even with regards to combating transnational crimes, so in essence, Binance or any other exchange for that matter should be and could be held liable and accountable if proven they did wash trade or did any other form of manipulation which is illegal! I think these are the very reasons why Binance had blocked U.S. customers from trading in its platform! Now the questions is, will the U.S. Government have the political will to pursue Binance if they can acquire strong evidences suggesting a wash trade or manipulation had occurred? Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: cahbagus555 on October 27, 2019, 03:06:21 AM interesting catch, ya i think its pretty normal im not a big trader, is there anything bad that can come from this? i know whales can use it to make market moves, but thats just part of the game, no? remember most normal market manipulation is not illegal in crypto, YET : / Agree, things like those shown on the chart are normal because of many factors. It could happen because of a wrong trader input buy order or sell order. Even in the stock market, things like this often happen and this is something normal Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: Hueristic on October 27, 2019, 03:16:07 AM Well i have been lazy an have too much on binance but have felt pretty comfortable as they seemed to be honest and with such a large user base I would never have guessed they would take the chance of ruining their income by getting into shady shit like this. I'm going to be looking forward to an investigation of this and Binances reply. In the mean time I guess i have to make some cold wallets.
BTW OP, you should put the source at the top of your post because otherwise it looks like you did this legwork as not everyone reads the entire post. Title: Re: Binance could be Wash Trading Latest Statistics Show Post by: sikke on October 27, 2019, 07:59:00 AM Every single exchange can be suspected of it. Binance is no exception.
I remember a big fuss was made about OKCoin and Huobi a while back in regards to wash trading. Obviously these accusations still stand but people's hatred towards them have died down quite a bit. It's probably because of the fact that wash trading doesn't necessarily directly influence the outcome of trades, but rather just buffs up volume, and that it's very hard to find real evidence of it. Either way, just don't let exchanges who have large volumes fool you into thinking that they're automatically trustworthy. |
