Cryptocurrency exchange volume: More fake than real?

[ASHLIUSZ]

Faking of trading volume is quite common with the exchanges. This fake volumes were to enrich the trading through those exchanges. Quite often if some inspections were made over the exchanges there will not be no big issues with this fake volumes. In the past when the fake volume was found, drastic market crash took place and this too is mentioned as a reason for etf rejection.

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[logfiles]

Now that I see OKex and HitBTC on the list. I can confirm. Lots of bots in there. I did try to trade in them once, and I was left perplexed.
HitBTC even takes it further, their withdrawal fees is just so ridiculous... Never use that exchange if you plan to use it.

[Twinkledoe]

Faking of trading volume is quite common with the exchanges. This fake volumes were to enrich the trading through those exchanges. Quite often if some inspections were made over the exchanges there will not be no big issues with this fake volumes. In the past when the fake volume was found, drastic market crash took place and this too is mentioned as a reason for etf rejection.

It is like a norm already in crypto exchanges. So use only the trusted exchanges. The longer you use a particular exchange, the less worry you will have on them. New ones are really scary to use, you don't know if you can get your coins back.

[posi]

According to Exchange Advisory List, only 2 exchange sites gives you real volume both Bitfinex and Binance are found that giving real volume compared to other exchange sites.

Look at the recent report below.


Source: https://www.blockchaintransparency.org/

But this is not 100% that both well-known exchanges don't have fake volume this is what Blockchain transparency institute report.
Much better to follow BLOCKCHAIN TRANSPARENCY INSTITUTE or this https://twitter.com/bti___ for the latest report.

Firstly, all crypto currency exchanges site are once guilty of the fake volume list which I believed we all know that coinmarketcap was either. However, I dont trust much in the exchange adisory list because there's no point for top exchange site like coinbase etc will provided fake volume.

[karloscimot]

It's pretty obvious that those exchanges new or even some established one as really faking their volumes. Maybe the question is why they are doing this fraudulent practices?

One reason I see is that to attract noobs investors, because competition is very tough this days, specially that we are still in the bearish cycles.

in the world of trade sometimes there are those who commit data fraud, the aim is clear to be able to look successful and be able to attract investors sometimes the way they cheat can they do. so we all must be careful and always careful if there is something that offers great benefits without us struggling to participate in the struggle, immediately report it to the authorities if we suspect data that does not make sense.

[coinplus]

I think faking wouldn't get you that far in business though, like yeah you would get some users seeing your high volume but at what point can you keep it up, you can't do that forever. At one point an exchange needs to realize their volume is mostly fake and not real and the real ones make them the money so after certain time if the real is not enough than the business can't sustain.

You have to have high volume to make a lot of money from trading fee, if you do not have high real volume than you won't be making too much money neither which will result with you at one point saying "we are not making money enough" and closing the exchange via either regular ways or "hacking" that you basically steal everyone money and leave. That is why even if a place does 50% of fake volume than I do not trust them.

[DeadCoin]

I understand the business tactics behind it. But how far its true the exchanges have set up the volume to that extend. I understand the competition behind each exchanges. This just covers the investors to their exchanges. But is that going to affect the market? I am bit confused about. I dont think this would affect the market growth of crypto currencies.

[Huskarls]

Actually there is still a lot of exchange that I think there is still manipulation, like yesterday 28th March 2019. I tried arbit coin because 6 hours had a price gap that was quite far, but when the coin just landed, the price suddenly dumped. I also see some suspicious trade on the trade history

[figmentofmyass]

I think faking wouldn't get you that far in business though, like yeah you would get some users seeing your high volume but at what point can you keep it up, you can't do that forever.

i think it works much better in a smaller market without many competitors, where it's not the norm. in 2015-16, huobi and okcoin were obviously faking volume but they still rose to being the dominant/leading exchanges in the world. it was a much smaller market back then.

but today, exchanges like huobi and okcoin are a dime a dozen. the exchange market is not only over-saturated, but over-saturated with exchanges that fake their volume. it's just not as effective as it used to be. people aren't gonna switch to no-name exchanges now just because of inflated volume numbers. reputation and branding is much more important.

[Hamphser]

I think faking wouldn't get you that far in business though, like yeah you would get some users seeing your high volume but at what point can you keep it up, you can't do that forever.

i think it works much better in a smaller market without many competitors, where it's not the norm. in 2015-16, huobi and okcoin were obviously faking volume but they still rose to being the dominant/leading exchanges in the world. it was a much smaller market back then.

but today, exchanges like huobi and okcoin are a dime a dozen. the exchange market is not only over-saturated, but over-saturated with exchanges that fake their volume. it's just not as effective as it used to be. people aren't gonna switch to no-name exchanges now just because of inflated volume numbers. reputation and branding is much more important.

It doesnt really work these kind of tactics nowadays yet as you said people would just simply stick to those reputable ones rather than switching into new that they saw due to volume numbers.
I agree on your point about huobi and okcoin.

We have seen a number of news about faking volumes thats why im aint suprised if there are new volumes would do such act once again.

[Slow death]

Recently The Tie released their findings of a study on the extent of volume manipulation by cryptocurrency exchanges. To no one's surprise, they found extensive manipulation amongst many cryptocurrency exchanges.

this was already expected, unfortunately because it is not a regulated market that is made periodic inspections is vulnerable to this volume manipulation, bad quality of provision of services and high frequency of scam cases. And there are still some people who argue that governments should not interfere in this crypto market because it will allow people to be restricted their freedoms, but I do not agree with that thought. without interference from governments, it will not be possible to inspect and take action in case some exchange manipulates its volume

[beerlover]

Fake trading volume has been a persistent problem in crypto. It didn't start today, a lot of exchanges has been doing it; putting up fake trading volumes to deceive people. It also happened last week as two exchanges were about to overtake Binance on CMC Rankings but it was later discovered that the it volumes are fake. So, this is not the first time, that's why I don't trust most of these exchanges, it would be better trading within us in this community or with our colleagues and friends.

Moreover, faking trading volume is not a new thing just due to crypto space. It has been done in stock and forex markets for decades. Still, we need to be careful up to the level that we are able to. One simple right away tips we must learn out of these discussion is, volume is not at all a criteria anymore for choosing an exchange nor choosing a trading pair.

[taktik]

Actually there is still a lot of exchange that I think there is still manipulation, like yesterday 28th March 2019. I tried arbit coin because 6 hours had a price gap that was quite far, but when the coin just landed, the price suddenly dumped. I also see some suspicious trade on the trade history

Until recently, I could not understand why such actions are performed on trading exchanges, but in my opinion, this is still a real price manipulation in order to provoke users of cryptocurrencies to certain actions.

[Oceat]

Faking of trading volume is quite common with the exchanges. This fake volumes were to enrich the trading through those exchanges. Quite often if some inspections were made over the exchanges there will not be no big issues with this fake volumes. In the past when the fake volume was found, drastic market crash took place and this too is mentioned as a reason for etf rejection.

It is like a norm already in crypto exchanges. So use only the trusted exchanges. The longer you use a particular exchange, the less worry you will have on them. New ones are really scary to use, you don't know if you can get your coins back.

It is better to use the most reputable one that has less issue than the rest of these exchanges giving fake data although it is common already in most exchanges. Be careful when choosing one these exchanges that you aren't familiar with you might feed your coins to the wrong hands.

[BitHodler]

It is better to use the most reputable one that has less issue than the rest of these exchanges giving fake data although it is common already in most exchanges.

In an ideal world people would ignore these exchanges, but in the crypto world people don't seem to give a shizzle and continue using the exchanges they know are participating in very shady market activity.

Most of these exchanges are very soft with their AML/KYC procedures, and that's what people like about them because they can continue trading trash coins over there. It's all about greed in crypto, not about what makes sense to do.

An easy way to figure out if these exchanges are really that popular, is to check out their website ranking stats. In most cases these exchanges have a poor ranking. Poor ranking with top 10 exchange volume is a red flag.

[Hannahanto]

Was really surprised to hear it. I have traded and still trading in the best exchanges. I just believed its data shown. But i do understand that this is for the business and nothing else. What bring to exchanges by keeping the volume so high is the crowd to the exchanges. Expecting more crowd to pitch in to the exchanges. Will this in anyway affect bitcoin's growth?

[rodel caling]

There are many fake volume and sometimes some shitcoins jump too high but after you login on some exchange the price is not the same as what they show in some coin monitoring site like coingecko or coinmarketcap.

So, I decided to trade some coins only in trusted exchanges which is well known here in the forum like Binance.

That's right mate I'll go with your thoughts I think that problem to all exchange need to resolve that need to coordinate to each other the price of every coins listing their exchange avoid confuse of the people using different exchange for their investment.

[joniboini]

Will this in anyway affect bitcoin's growth?

Depends on what you define 'growth' is. If you're talking about tech development, then of course not. But adoption, price wise, I think yes, though the degree for the effect is hard to measure. In short, if you don't have a healthy market then the asset is prone to price manipulation, shady practices, lots of funds gone due to hack, etc. Traders/buyers/sellers, or users in general will definitely bear a huge risk if they continue trading on shady exchanges.

[ethereumhunter]

Some of the exchanges have fake volume, and the other exchanges have a real volume. It's not happening in crypto exchanges, but it's happening too in the forex exchanges. I don't surprise to see the table as I don't think too serious with that. As long as I can take the benefits from the crypto, then I don't have to worry. In the future, that will be many more exchanges that were showing the real volume than the fake volume because they will think that it is no use to give the fake volume and people will become smart to see something strange and they will leave those exchanges if somehow the exchanges make a fake volume.

[Vitalicus]

Faking of trading volume is quite common with the exchanges. This fake volumes were to enrich the trading through those exchanges. Quite often if some inspections were made over the exchanges there will not be no big issues with this fake volumes. In the past when the fake volume was found, drastic market crash took place and this too is mentioned as a reason for etf rejection.

Counterfeit volume is present in most major exchanges and they do this to be able to stand in the top 1 position in the coinmarketcap. This really affected investors because they were very difficult to choose good exchanges and I hope that in the future many tools will detect the virtual volume found and remove and everyone can see the accuracy in each exchange