New Report Warns 87 Percent of Cryptocurrency Exchange Volume Is Potentially Sus

[darewaller]

I believe no one will ever  get the right result regarding the true volume of exchange unless these exchanges submit a report.  All in all, it is a waste of time reading this kind of article since this is just mere speculation of someone who thought they are bright enough to calculate the volume by simply doing the formula stated at the OP. 

Even if they submit any form of report to the public or anybody that wishes to verify it, that doesn’t also guarantee that the volume quoted in the report will also be genuine and not manipulated like it’s done in the system, so like you said, all these is just a waste of time and it is not exchanges that people should be focused on fighting now, rather all their fight strength and tools should be focused on fellows scamming investors through some of these projects.

If true, exchanges might just be using this as a strategy to boost their existence in the market by hyping their reputation.

[1715010714]

1715010714

[1715010714]

1715010714

[1715010714]

1715010714

[1715010714]

1715010714

[coolcoinz]

the main reasons for the huge fall in volume on Chinese exchanges has been two things based on my observation. first was the fact that Chinese government started adding restrictions to exchanges which drove a lot of traders away from these exchanges to elsewhere. then it was addition of fees which were zero before and these two combined reduced the volume drastically which then was interpreted as "it was fake which is why it dropped!!!" which was not entirely true.

It wasn't like that as far as I know. There were suspicions of fake volume on big Chinese exchanges in 2014 since their volume spiked to crazy high amounts when you compared them to Western exchanges. This is from December 2013, published on Coindesk.

In an online audio interview, Shi said that he would not call OKCoin out and accuse it of manipulating the exchange rate, but he cautioned traders against the exchange, claiming that it “plays both the player as well as the referee”.

In response, Star Xu (Xu Mingxing), CEO of OKCoin who is also believed to be one of the largest bitcoin holders in China, issued a very brief explanation, in which he attributed the discrepancy to the company allowing large traders to trade through its API rather than the webpage interface – an explanation, if true, that may be somewhat hypocritical given that only a couple days ago Xu wrote a statement criticizing the use of “high-frequency trading software”.

Many perceive Xu’s explanation as a cover-up, among them, some Chinese bitcoin celebrities such as Li Xiaolai and Zhao Letian who posted on Sina Weibo agreeing that OKCoin’s data was problematic.

Later, the Chinese government begun to force audits on exchanges and I remember reading about them being told that they will not be allowed to continue operation if their volume was fake. As a result, the volume dropped almost instantly. So, unless people thought the exchanges were faking volume and took the government warning for a cease and desist letter, they were really doing it. The drop in numbers was just too big and too fast and they were being accused of manipulation for more than 6 months before the actual event.

[1Referee]

All of them makes huge sense to me. All are old beside Binance. Binance was just super lucky with its timing and also works good. So is not just luck, but still a lot of luck. You cant fail with any of these exchanges.

Binance had some luck with the momentum they had going for themselves, but the most important aspect is that where their brave compliant competitors did everything to not break any laws where they offer their services, Binance just didn't give a shit and entered as if it was their right to settle there.

IIRC, Japan has been the only country actively trying to make Binance comply, but for whatever reason, Binance chose to halt their services in Japan and exit entirely. Such a large and successful exchange has no problems financially covering all the costs, so there must be other (potentially shady) reasons they didn't want to register and get themselves audited.

On the other hand, they are very important for Bitcoin because all the altcoin and ICO shit there increases the demand for Bitcoin because that's what most people use to trade.

[Febo]

All of them makes huge sense to me. All are old beside Binance. Binance was just super lucky with its timing and also works good. So is not just luck, but still a lot of luck. You cant fail with any of these exchanges.

Binance had some luck with the momentum they had going for themselves, but the most important aspect is that where their brave compliant competitors did everything to not break any laws where they offer their services, Binance just didn't give a shit and entered as if it was their right to settle there.

IIRC, Japan has been the only country actively trying to make Binance comply, but for whatever reason, Binance chose to halt their services in Japan and exit entirely. Such a large and successful exchange has no problems financially covering all the costs, so there must be other (potentially shady) reasons they didn't want to register and get themselves audited.

On the other hand, they are very important for Bitcoin because all the altcoin and ICO shit there increases the demand for Bitcoin because that's what most people use to trade.

Not just important but very important. As it looks almost 1/4 of all bitcoin trades goes on binance.  I doubt is much different with alts.

[South Park]

They used a stupid method, and therefore got stupid results. No conclusions can be drawn from this report.

A great number of persons will not read, or understand, or care about the calculation method.
The fact that somebody made a "report" with this conclusion is enough. Then people will start referring to this news to prove that crypto is scam or whatever suits them best to be proven.
This is the next level of fake news.

While we know that exchanges do in fact exaggerate the level of trading taking place in their platforms this study and its methodology leaves a lot to be desired, but when it comes to fake news that doesn't matter what matters is that they can write that there is something wrong about the market of cryptocurrencies and scare people away from the market, this is a study that already had the conclusion before they made any kind of calculation or investigation about the subject