How Are Bitcoin Exchanges Capable of Faking Trading Volume?
Generating a lot of fake transactions as an exchange sounds like an easy feat, but that is not necessarily the case. To be more precise, it depends on how these platforms would go about doing such a thing. In most cases, people look at the bitcoin trading volume to determine whether or not they should buy or sell cryptocurrency. If exchanges successfully skew the numbers, there is a lot of volatility to be found in the bitcoin market.
So far, three possible ways to fake exchange volume have been uncovered. The first option is by just releasing a fake number of bitcoin transactions taking place in the past 24 hours. This is by far the easiest way to trick people into thinking there is a lot of bitcoin trading action going on, even though that is far from the case. Since most Chinese exchanges release their transaction numbers 24 hours later, it is very easy to fake volume after all.
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