Fake Transactions at Bitcoin Exchanges

[Cindy23]

you may be seeing transaction volume as a metric when choosing bitcoin exchanges. But bitcoin insiders reveal that it is an open secret that exchanges generate fake transactions to make themselves look better.
this could be devastating for bitcoin newbies like me. Normally, there are three ways to do so.
Read more about this story at:
http://news.8btc.com/threes-ways-to-generate-fake-transactions-at-bitcoin-exchanges

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[mobnepal]

This is well known bitter fact about bitcoin trading platforms specially those based on china. This is one of the factor that causes too much volatility in bitcoin price and this have also triggered recent investigation of chinese bitcoin exchanges by PBOC.

[pinkpanther03]

you may be seeing transaction volume as a metric when choosing bitcoin exchanges. But bitcoin insiders reveal that it is an open secret that exchanges generate fake transactions to make themselves look better.
this could be devastating for bitcoin newbies like me. Normally, there are three ways to do so.
Read more about this story at:
http://news.8btc.com/threes-ways-to-generate-fake-transactions-at-bitcoin-exchanges

If that is true, it is really detrimental for a newbies to encounter that kind of transaction actually, in fact it shouldn't be happen in each exchange like that. or else it might gonna be a threat to other exchange such a situation case like this.

[TastyChillySauce00]

Exchangers are always competing with each other in order to gain as many users as they can and to make it succeed they need to have a good method of marketing and make up a good image for them, it's actually a normal thing happened that it's even existed in real life, just by seeing from this, you can distinguish that the exchangers which use this kind of method are not honest and rather not recommended. So, better to get out from these services I suppose.

[topesis]

you may be seeing transaction volume as a metric when choosing bitcoin exchanges. But bitcoin insiders reveal that it is an open secret that exchanges generate fake transactions to make themselves look better.
this could be devastating for bitcoin newbies like me. Normally, there are three ways to do so.
Read more about this story at:
http://news.8btc.com/threes-ways-to-generate-fake-transactions-at-bitcoin-exchanges

I doubt you are a newbie in the space, if you are you won't understand the impact of fake transaction has on the Bitcoin price fundamentals.

Concerning fake transaction, almost all these exchanges are guilty of this, most people will move there tokens to where there is liquid and faking it is a way to attract traders

[mindrust]

These recent pumps may have something to do with those exchange fake pumps. We may very well be in a Gox v2.0 phase at the moment.

It is all the same. Bitcoin is rising, alt coins are rising... NMC rises first, then out of no where, PPC rises. And then NVC takes its turn. DSH and ETH are already reached the moon. It feels like exactly the same when it was in 2013.

If Poloniex is behind those pumps... What do ya think may Polo be the...

next Gox?

[ImHash]

Why do you care about inside exchange trades? what really matters is the main chain transactions with actually the recommended fees and also mined by more than 1 pool. and as it seems everyone after a few hours of inspecting the exchange's activities could figure out that they're making fake transactions. so the joke is on them.

[Dimelord]

you may be seeing transaction volume as a metric when choosing bitcoin exchanges. But bitcoin insiders reveal that it is an open secret that exchanges generate fake transactions to make themselves look better.
this could be devastating for bitcoin newbies like me. Normally, there are three ways to do so.
Read more about this story at:
http://news.8btc.com/threes-ways-to-generate-fake-transactions-at-bitcoin-exchanges

Its quite familiar with chinese exchanges.They are always blamed for generating fake transactions to show their trade volume huge.

[Red-Apple]

you may be seeing transaction volume as a metric when choosing bitcoin exchanges. But bitcoin insiders reveal that it is an open secret that exchanges generate fake transactions to make themselves look better.
this could be devastating for bitcoin newbies like me. Normally, there are three ways to do so.

why can it be devastating for bitcoin newbies!
the fake volume is fake, it is not affecting the market or even the orderbook. as long as the exchange platform doesn't show fake orders in the orderbook and prevent people from selling or buying from those you are good. and there is nothing to worry about.

Read more about this story at:
http://news.8btc.com/threes-ways-to-generate-fake-transactions-at-bitcoin-exchanges

if you have something to say, say it here. or if you found the article good then summarize the good part here in your post and tell us your thought. if we wanted to read articles we could have done it ourselves.

[michkima]

you may be seeing transaction volume as a metric when choosing bitcoin exchanges. But bitcoin insiders reveal that it is an open secret that exchanges generate fake transactions to make themselves look better.
this could be devastating for bitcoin newbies like me. Normally, there are three ways to do so.

why can it be devastating for bitcoin newbies!
the fake volume is fake, it is not affecting the market or even the orderbook. as long as the exchange platform doesn't show fake orders in the orderbook and prevent people from selling or buying from those you are good. and there is nothing to worry about.

Read more about this story at:
http://news.8btc.com/threes-ways-to-generate-fake-transactions-at-bitcoin-exchanges

if you have something to say, say it here. or if you found the article good then summarize the good part here in your post and tell us your thought. if we wanted to read articles we could have done it ourselves.

It actually affects the trading of bitcoins when there are fake volumes or any data that is manipulated it will have an adverse effect on the trading habits of traders and as well as affect their decision when they say those data. We cannot rule out that this fact, if we do people will really believe what they see and think that bitcoins is really going up or down based on the volume compared to prices.

[audaciousbeing]

you may be seeing transaction volume as a metric when choosing bitcoin exchanges. But bitcoin insiders reveal that it is an open secret that exchanges generate fake transactions to make themselves look better.
this could be devastating for bitcoin newbies like me. Normally, there are three ways to do so.
Read more about this story at:
http://news.8btc.com/threes-ways-to-generate-fake-transactions-at-bitcoin-exchanges

Hardly will one see any site that is entirely truthful. They will want to use one way or the other to entice cclients to patronise their services. Its even happening in the real world where companies will paint themselves as very solvent and standing firm whereas they are wallowing under bank debts. In other to be careful, one just needs to patronise those sites that have stand the test of time and have even proved themselves worthwhile over the years rather than those who came into existence just last month and have started claiming large volume of transactions.

[bamboylee]

I wonder which exchanges practices this fraud. All I know is that Chinese exchanges are guilty of this and that is why PBOC are investigating them. And if other exchanges are doing this as well, how can we trust the price we are right now?

[giveen]

Wow i never heard about this in exchanges before while if you see this still happens in those doubling sites as they show fake transaction. Best thing to do is google about the site and check it's reviews and then only use it. Or i can suggest you a few if you are buying using bank then use bitfinex , if with credit card then coinmama , if buying with altcoins then shapeshift and if you want to buy using pm , ok pay then use changer.org

[joshy23]

I wonder which exchanges practices this fraud. All I know is that Chinese exchanges are guilty of this and that is why PBOC are investigating them. And if other exchanges are doing this as well, how can we trust the price we are right now?

Yes, that's why the PBOC investigated those Chinese exchanges and found out that they are doing fake transaction volumes and offering 0 fees before. This started an arms race between all the domestic exchanges, heralding in an era of zero fees from which China has never returned. I think BTCC and OKCoin is involved.

[pooya87]

fake transactions are different from fake volume and what exchanges do is reporting fake volume. it is just statistics that they are reporting to be higher in ranking among other counterparts. and the only effect this action of their can have is a higher rank among other exchanges and be for example number 1 or 2,... and also it may end up biting them in the ass when the tax guys came looking for their cut of the deal.

[batang_bitcoin]

What's new about China? They are masters for everything, for reverse engineering, faking data's, faking products and of course with bitcoin transactions. As long as it is going to get a lot of attraction and possibly can get people to invest and use them and put money to them. They will surely do everything for it, China's god is famous, named money.

[xypos]

you may be seeing transaction volume as a metric when choosing bitcoin exchanges. But bitcoin insiders reveal that it is an open secret that exchanges generate fake transactions to make themselves look better.
this could be devastating for bitcoin newbies like me. Normally, there are three ways to do so.
Read more about this story at:
http://news.8btc.com/threes-ways-to-generate-fake-transactions-at-bitcoin-exchanges

The things that they listed were obvious.

Like you could literally be a newbie at bitcoin and you could have written up the same article. I mean yeah these are the ways to fake volume but that article doesn't mean anything because they haven't got any proof that any of the no fee exchanges operating in china are actually faking their volume.

The admins are ultimately in control here, as they own the site. If they post fake logs then nobody can really find out.

Anyways, personally I don't believe that Huobi or OKCoin actually fakes their volumes. I believe that there is no need to, even though much of the volume might be heavily inflated from users trading back and forth, as there is no fees involved.

[iamTom123]

This is well known bitter fact about bitcoin trading platforms specially those based on china. This is one of the factor that causes too much volatility in bitcoin price and this have also triggered recent investigation of Chinese bitcoin exchanges by PBOC.

This issue could have been minimized or even stopped had there been regulations imposed on matters related to Bitcoin and regulations of course call for regulators something which Bitcoin is an anathema of. Bitcoin and regulations could not see face to face because Bitcoin was born partly because in response to the cry against the regulations imposed by any government-created agencies. Having said that, the problem is that people will always be motivated by profits and self-interests as part of our weak human nature and Bitcoin as we see it now can even be magnifying our human nature's greed pattern.

[valta4065]

That's not... Really fake transactions aren't just for the fun
It's a way for traders to impact the market.
It's there way to tell "hey, I think market should go this way" ^^

[Pursuer]

It occurs commonly in chinese exchanges.They generate fake buy and sell orders to show increased trade volume.Chinese exchanges always try to dump the bitcoin price whereas other exchanges try to show bitcoin price as increased.

you can show fake volume but you can not dump bitcoin price because that means you need to spend bitcoin and if you have ever looked at an orderbook on an exchange they are not small orders! the exchange has to dump at least 3000BTC or in their fake Chinese exchange orderbook they have to dump 10,000BTC to make the price go down only 10%

what they do, or better say did, is just reporting fake volumes. for example the daily volume was 1000BTC but they reported it as 5000BTC and it is mostly because of competition and also a part of it came from their 0 fee policy.

it is worth adding that all of this is over now since PBoC is monitoring their every move. so you can expect a much healthy market over in China.