Bitcoin Forum

Just randomly navigated to https://coinmarketcap.com/rankings/exchanges/ and what do I see?

Top exchanges: Etherflyer, MXC, LBANK, ZB.COM

https://i.imgur.com/vBsacbd.png

Are those exchanges a scam / faking their volume a lot or is EtherFlyer, MXC, etc "the new binance"?  :(

Never heard of them

They are possibly fake exchanges that try to pump their volumes in order to gain visibility.
I have never heard of them too and apart from that I think that the Binance is the top (or one of the top exchanges with the higher volumes). It doesn't make sense to see it on No. 6.

Affirmative.
They have several bot accounts which have 0 fee, and they just trade directly between themselves.
This is done so fast that a regular person wouldn't really catch it, but it's visible in the history.
This is called wash trading, and it's frowned upon

Good catch and thanks for the information.
Shouldn't this be an illegal activity and be punished by law accordingly?

Dunno, maybe yes, maybe no.
Question is, are those exchanges under any such juridistiction? Does the law in those countries recognize it as illegal?

Most exchanges are regiateres in Malta, and Estonia, and i have a feeling there is a reason for that.

Besides, you'd have to prove it. At worst, i think its gray area because you as an observer dont see who made the trade, and to know that you'd need awarant from the authorities, due to GDPR and other privacy laws.

Would you be OK with, lets say Binance giving anyone your trade history? Especially since 75% of crypto is hidden from any tax?

Truth be told, a lot of exchanges are doing the wash trading strategy to increase their volume activity. You really can't compete with bots if you are a real trader of that coin. They are fast and you will see the buy/sell orders executed even without seeing it in the line up of their buy/sell orders. I have seen that numerous times in several exchanges, not only the mentioned exchanges by the OP. So if you are a trader of a specific coin, you need to observe first the trading movement, if you noticed that there's wash trading, better get out. You can't compete with them because they are really fast.

Obviously it's fake volume. We can easily detect this shit if we trade on those exchanges, poor liquidity, orders are stuck because of no buy or sell order.

This topic response maybe yes' and maybe not because popular exchange volume 90% trust but their is some false volume exchange. Example i don't trust etherflay, etherdelta some exchange volume.

if you never heard of them and also having doubt about their existence then Don't use them simple as that right?

there are many exchange that we are already trusted so why bother of this scammers?just expose them if you think they are shits and to save others becoming a victim.

Avoid searching volume of exchanges on Coinmarketcap, you will only be disappointed.

The top and known exchanges are not even at their top and unknown ones are placed there. Maybe part of their service, if the unknown exchange pays for being placed at the top.

there are only few exchanges which don't have fake volumes or negligible , the popular one other then this almost many exchanges have fake volume just compare those volumes with exchanges you know and rank them you will come to know that they are fake volume ,