[2019-05-28]Bitwise White Paper: Fake Trading Volumes by Exchanges Do Not Impact

[Vladdirescu87]

American crypto investment manager Bitwise released a paper claiming that fake trading volumes by crypto exchanges do not impact bitcoin’s (BTC) price. Released on May 24, the white paper is an extended version of Bitwise’s March presentation alleging that 95% of volume on unregulated exchanges is fake.

Published on the official website of the United States Securities and Exchange Commission (SEC), the new white paper is based upon the research that Bitwise Asset Management presented to the SEC on March 17, 2019, as specified in the document.

https://cointelegraph.com/news/bitwise-white-paper-fake-trading-volumes-by-exchanges-do-not-impact-btc-prices

[figmentofmyass]

American crypto investment manager Bitwise released a paper claiming that fake trading volumes by crypto exchanges do not impact bitcoin’s (BTC) price. Released on May 24, the white paper is an extended version of Bitwise’s March presentation alleging that 95% of volume on unregulated exchanges is fake.

i could have told you that. the existence of so many volume-faking exchanges on the periphery doesn't matter. nobody uses them and nobody pays attention to their price changes. they can't be effectively arbitraged because they have no real liquidity.

price discovery is occurring on exchanges where real supply is meeting real demand. arbitrage (or the assumption that arbitrage will take place) handles the rest.

[davis196]

Maybe they can't impact the bitcoin price,but they CAN for sure manipulate the altcoin prices,especially the small penny altcoin prices.

[Oilacris]

Maybe they can't impact the bitcoin price,but they CAN for sure manipulate the altcoin prices,especially the small penny altcoin prices.

Or simply with low marketcap shitcoins.Faking trading volume does affect on this area it might not be affecting btc itself but come to think that there are shitcoin traders out there.

[Kemarit]

Maybe they can't impact the bitcoin price,but they CAN for sure manipulate the altcoin prices,especially the small penny altcoin prices.

And that where those manipulators/speculators pump-and-dump groups really do their thing. We all know that altcoins markets are haven for those kind of greedy people and people have been warned, however, but whatever reasons, many are still failing for the trap and later will bitch around saying they have lost so much money. If they would just go and invest on Bitcoin then they wouldn't have this head-ache.

As for Bitcoin price or fake volume tradings, yes, it could have been fake and ballooned by some trading exchanges but most of the time it wasn't very evident because of the continuous flow of money in the bitcoin market. So @figmentofmyass, said, it doesn't really matter, arbitrage for one is a true testament on how the spread can be cover up.