Wash trading with crypto exchanges

[South Park]

This list is not full, as there are some exchanges with real volume besides this list.
Wash bot trading is a double-edged sword. Fake volume can attract noobs, but can scare away experienced investors and it won't last long.
As a promoting launching step it can take place, but afterwards if the volume will not became real - we can suppose just one result - only strong players will remain in this game.

No list will ever be complete but it gives you a good idea of what exchanges to select, one of the things traders are looking is volume in an exchange since that means they can easily exchange their coins back and forth with no issues but when you see some exchanges have only 1% of real volume and the rest is fake then you realize that there is a huge deal of manipulation going on and to me it is obvious those exchanges are doing that themselves to seem more popular than they are and as such they are untrustworthy.

[akamit]

1% real volume is insanely low compared with the reported volume... That's really insane.

However, there's one thing to remember, most wash trading is done by projects to boost of their own token's daily trade volume.

Maybe Trading Competitions are playing a vital role for fake trading volumes?

With trading competitions, they are not really trying to hide it. The very reason a trading competition takes place is to boost the coin's traded daily / weekly / monthly volume, and I think that's okay as long as everything is fair.

But a trading competition attracts early investors and whales that always have the upper hand. Also, they're financially motivated to win the competition given how most cryptos that conduct trading competition start to see their asset value drop from its face value when it was first launched.

I do agree with all your points but what I've understood so far that repetitive buying and selling from one user creates fake volume.
So if a coin/token launches a trading competition then there is a high possibility that a single user will repetitively buy and sell the coin/token to climb at the top for rewards.

So in that case, fake volume will increase for the entire exchange just because of the competition... please correct me if I'm wrong.

Nowadays we see trading competitions, hodling competition etc to fetch traders/investors...

[CryptoBry]

This is no new data. It's been discussed widely in the last few weeks. However, there's one thing to remember, most wash trading is done by projects to boost of their own token's daily trade volume. Exchanges merely facilitate this.

That is more like it. Without any data I can use, it would be easy to conclude that the best possible people to do the manipulations are the people behind the specific project as they want to make sure that the value of their project will be rosy. Many of the project development team members usually also have a hoard of coins or tokens of their own project so if they can manipulate the exchanges then they get the incentives they are looking for. And ordinary token holders will also be happy because they can sell when they got at a good price. So maybe we have a win-win situation that is why many are not actually complaining at all...except that this arrangement may not be working for the long-term stability and viability of this industry.

[LeGaulois]

And ordinary token holders will also be happy because they can sell when they got at a good price. So maybe we have a win-win situation that is why many are not actually complaining at all...except that this arrangement may not be working for the long-term stability and viability of this industry.

How can you be happy with wash trading on exchanges? It's market manipulation, how can it be a win-win situation? It's forbidden in finance and could lead someone to jail.
People doing this don't care for the long-term since they will be gone before. The holders/traders are the ones who get fucked.

[Kemarit]

What's that "BTI verified" sign?How can this BTI company verify that those exchanges aren't faking their trading volume?Or this is just some marketing trick so more people might choose the crypto exchange platforms that are "verified",while they fake their trading volume too?
I will continue to repeat that centralized crypto trading platforms are no better than banks.

It's not the first research about wash trading but this time they used different algorithms for several months. Several exchanges use the results to fight the wash trading occurring on their platform. Huobi, for example, is one of the exchanges with a lot of WT but they decided to take actions, Huobi even joined DATA for this reason.

Right, if I'm not mistaken Blockchain Institute of Technology releases this kind of reports quarterly (correct me if I'm wrong).

I don't think that will be a problem for me.
As long as I can take the profit from the trade, I don't care of what the bots doing because I think if I can follow the bot moves, then I can have a chance to make a profit even for just a small profit.
But yes, I am sure that will happen in all exchanges especially if, in that exchanges, whales have stayed and trying to buy and sell the coin.

LOL, I don't know about you but sooner or later anyone here will be affected by this kind of manipulation one time or another. Folllowing bots? How can you do that? It doesn't makes any sense. Of course anyone here wants to make profits, but if there is some sort of manipulation from behind, it will be very difficult specially if you try to ride the waves and then lost at the middle.

[traderethereum]

I don't think that will be a problem for me.
As long as I can take the profit from the trade, I don't care of what the bots doing because I think if I can follow the bot moves, then I can have a chance to make a profit even for just a small profit.
But yes, I am sure that will happen in all exchanges especially if, in that exchanges, whales have stayed and trying to buy and sell the coin.

LOL, I don't know about you but sooner or later anyone here will be affected by this kind of manipulation one time or another. Folllowing bots? How can you do that? It doesn't makes any sense. Of course anyone here wants to make profits, but if there is some sort of manipulation from behind, it will be very difficult specially if you try to ride the waves and then lost at the middle.

Yes, following the bot for placing the price. I guess you do not yet try this?
Maybe that will sound funny to you or else, or it doesn't make any sense but yes, we can follow the bot movements and sometimes the bot will not move for a little time.
I am sorry I cannot explain because I am not good to explain to others.
But the bot will have a price target to buy and sell, and if we can enter the above or below from the price in the bot setting, then we could make the bot cannot move higher or lower.
No, it's not a gamble because we are following where the bots move and take the advantages from the bots.

[Slow death]

the crypto market is still very small and as it is not legalized in many countries it is very difficult to have exchanges with correct volumes and no have many customers that use their plastic cards to buy bitcoin. for example I can not buy bitcoin in binance using my bank card, I can not use my bank card to buy bitcoin in bittrex. if fresh money does not enter these exchanges, they will falsify volumes to be on top

[joshy23]

And ordinary token holders will also be happy because they can sell when they got at a good price. So maybe we have a win-win situation that is why many are not actually complaining at all...except that this arrangement may not be working for the long-term stability and viability of this industry.

How can you be happy with wash trading on exchanges? It's market manipulation, how can it be a win-win situation? It's forbidden in finance and could lead someone to jail.
People doing this don't care for the long-term since they will be gone before. The holders/traders are the ones who get fucked.

But still there's traders and investors who's willing to take the risk and cry after, they are trying to take advantage and when they've been left behind
they are the one who's crying out loud and keep screaming about scams.

[maxell_etheridge]

There is a huge problem in data clarity here, not many exchanges willing to share their very deep big data research, moreover many exchanges claims that they are so user-friendly, and they are absolutely fine with sharing their data, but only this one research that indicated pros, not cons.

[r1a2y3m4]

This is something that is common in cryptocurrency market. Even in coinmarketcap, there are manipulation of volumes since exchange are paying that site to fake their own volume. Lucky for us we still have a legit exchange binance.

[ancafe]

well, I think some of the exchangers mentioned are often used, and I don't complain about that. well, everyone's views are different, we can only ensure real volume when we want to trade, so checking before doing a trade is something that needs to be done.

[samcrypto]

This is something that is common in cryptocurrency market. Even in coinmarketcap, there are manipulation of volumes since exchange are paying that site to fake their own volume. Lucky for us we still have a legit exchange binance.

There’s a doubt with binance security now but i think they will remain a true cryptoexchange. Hitbtc are place of shitcoins and i think its better to use only the trusted cryptoexchange. Market manipulation is normal but its too unfair for the serious investors, exchanges must be regulated when it comes to the trading volume.

[webtricks]

I don't think these tactics help exchanges much because we all know the real picture and can easily identify which exchanges are really legit. However, to me price matters more than volume. If the exchange has good price and my orders get filled easily, I don't care whether the volume is legit or fake.

This is something that is common in cryptocurrency market. Even in coinmarketcap, there are manipulation of volumes since exchange are paying that site to fake their own volume. Lucky for us we still have a legit exchange binance.

Today Binance is enjoying good days, earning millions in fees, have huge reserves so it is looking safe and legit. But who knows what gonna happen tomorrow, the same Binance may turn broke and start playing dirty exchange games. As a crypto trader, it is always advisable to remain sceptical and don't over-rely on third party wallets.

[malikusama]

This is no new data. It's been discussed widely in the last few weeks. However, there's one thing to remember, most wash trading is done by projects to boost of their own token's daily trade volume. Exchanges merely facilitate this.

Exactly it was a hot topic during the last couple of months and nothing has changed in the data provided at that time and in the list posted by OP.
I think every trader is now aware of wash trading and the exchanges which are using it on large scale.
Just avoid using exchanges which are manipulating price for their own sake.

[South Park]

snip

This is something that is common in cryptocurrency market. Even in coinmarketcap, there are manipulation of volumes since exchange are paying that site to fake their own volume. Lucky for us we still have a legit exchange binance.

Today Binance is enjoying good days, earning millions in fees, have huge reserves so it is looking safe and legit. But who knows what gonna happen tomorrow, the same Binance may turn broke and start playing dirty exchange games. As a crypto trader, it is always advisable to remain sceptical and don't over-rely on third party wallets.

This is correct, just because binance has been a good exchange so far that does not mean this will not change in the future, when it comes to our investment in crypto we must always be vigilant, if you have not used an exchange in some time then you need to do your due diligence again since it is possible that the exchange changed from being a safe place where you could trade your crypto without any problems to a selective scam in which clients which deposit huge amounts of money lose it all.

[LeGaulois]

If you're using a bot for trading it doesn't mean you're wash trading. Banks rely mostly on bots. The only difference is their bots are so developed with algorithms. I remember a documentary where the bank speaker told the algorithms worth million $.
You can be sued in justice for wash trading in some countries, banks aren't going to take a risk.

But using bots or algorithms (call it what you want) to manipulate a market is a deceptive method to fool people.
If you're happy with wash trading as long your order is filled, it's like saying "there's a lot of murderers I can stop that but I don't care because they don't kill me, they kill other people"