Cryptocurrency exchange volume: More fake than real?

[XZERO1]

Many of exchanges specially recently using fake volume unfortunately, and some of them faking their liquidity by a huge difference, meaning in some cases it can go as high as 90% or even more fake volume, they're not that hard to notice tough looking at their order books and the buy and sells that's going through at the same time, I started a thread about this and how to spot these kind of exchanges months ago https://bitcointalk.org/index.php?topic=5094490.0

[1714881899]

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[1714881899]

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[canman]

Many of exchanges specially recently using fake volume unfortunately, and some of them faking their liquidity by a huge difference, meaning in some cases it can go as high as 90% or even more fake volume, they're not that hard to notice tough looking at their order books and the buy and sells that's going through at the same time, I started a thread about this and how to spot these kind of exchanges months ago https://bitcointalk.org/index.php?topic=5094490.0

Most of them use BOT to increase trading volume and it is appearing a lot at new exchanges. I think this volume increase will cause many new investors to face many difficulties in choosing. Coinmarketcap currently has no way to prevent this abuse, but in the future I hope that CMC will get the necessary tools to eliminate BOT and bring confidence to all investors.

[Sled]

No wonder that a lot of people tried to take advantage with the current market conditions and we are aware for this actions. I know it sounds tricky this days and we should be careful of what coin we trade and as well as the exchanges we used cause maybe we are into the wrong place. Fake volumes and some way of scamming looks like it growing right and taking a way to fool new traders, and so we should have to investigate before putting our money with them otherwise it turns into nothing.

[Forbiddenone]

Previous year some exchanges have greatly affected the volume with fake transaction and in 2017 also major exchange were minting coin out of thin year,thats why decentralized exchanges are suitable but tit will take time for them to get into action and i think exchanges should not support hard forked coin bcz they are useless and generally are used for manipulation purpose and it will greatly improve people and authority trust on crypto.

[milewilda]

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

Achievable but wont really this time to have these tools thats why its still rampant to see these exchangers to be known manipulating their volume.Some of them done it obviously
and some of it isnt really that noticeable at all.The aim of these fake or pumping volumes is to get attention through the entire market as said this do affect investors yet most of us do really
target out which exchange do have the highest or top volumes.

[canman]

No wonder that a lot of people tried to take advantage with the current market conditions and we are aware for this actions. I know it sounds tricky this days and we should be careful of what coin we trade and as well as the exchanges we used cause maybe we are into the wrong place. Fake volumes and some way of scamming looks like it growing right and taking a way to fool new traders, and so we should have to investigate before putting our money with them otherwise it turns into nothing.

I feel that this is not good because if you use fake trading volume, many investors cannot know exactly if the token you are holding is really potential or not. I think before investing in those exchanges, find out carefully because almost all exchanges that are on the market have fake volume and this makes me feel very difficult in make a choice

[GregH37]

Many of exchanges specially recently using fake volume unfortunately, and some of them faking their liquidity by a huge difference, meaning in some cases it can go as high as 90% or even more fake volume, they're not that hard to notice tough looking at their order books and the buy and sells that's going through at the same time, I started a thread about this and how to spot these kind of exchanges months ago https://bitcointalk.org/index.php?topic=5094490.0

Most of them use BOT to increase trading volume and it is appearing a lot at new exchanges. I think this volume increase will cause many new investors to face many difficulties in choosing. Coinmarketcap currently has no way to prevent this abuse, but in the future I hope that CMC will get the necessary tools to eliminate BOT and bring confidence to all investors.

The coinmarketcap you talked about, are they any saint themselves ? Aside the Bitcoin price, ethereum and Litecoin, have you ever asked how other coins managed to get to the top list, especially there are some coins on that top list that you and I know that they don’t deserve to be there, what suddenly made them leave their last position to being top ?

Have read in many places with proof how they themselves are agents to this manipulation going on too, which is probably how the owner makes his money from the site. As long as what they do does not affect my investment, I don’t have any issue with it.

[zhekinsp]

It is a known fact most of the information we found on site like coinmarket are not accurate and even the prices too so it is always better to check the trading volume by entering into their trading chart.

[mersal]

Probably the fake are more higher number in this situation more than the good exchanges but we don't have any other option to to face them properly we need to ignore some of the bad exchanges like we cannot know what will going on here at the time waiting will always helpful you to make the right decision properly.

[futile-resistance]

It is a known fact most of the information we found on site like coinmarket are not accurate and even the prices too so it is always better to check the trading volume by entering into their trading chart.

In my opinion, all the crypto enthusiasts are here in the market for making money and regardless of what many people in the market and many websites in the virtual market may tell you to do, you should always have your own strategy.

This is very important and I think that every men who became millionaire in the crypto has had the same fake news going on around him but they have made it so I think it should not bother you. This is basically a trustless system as per Satoshi's view hence we do not need to believe into what exchanges are showing or stating. We just need to be careful by not making decisions by what exchanges are showing, as that is the basics of being secured in this decentralized environment.

[StarofBTC]

I do not think it is fake for all the God's sake.

Do you know that couple of decades ago, the digital market was not even known to anyone but few out there. Today, its value is more than 3 trillion US dollar and the contribution of cryptocurrency is more than $140 billion which gives a very nice message that the market cap is not a joke because you could easily see the coins around being demanded and traded. So, better invest rather than doubt on this recovery phase. Because time is running out to catch the train from the beginning point itself.

Moreover, I just see these types of discussions are just the FUDs to collapse the confident among new investors in crypto space as these kind of things are not having any proof to catch those exchanges while manipulating their volumes and price levels.

[dunfida]

I do not think it is fake for all the God's sake.

Do you know that couple of decades ago, the digital market was not even known to anyone but few out there. Today, its value is more than 3 trillion US dollar and the contribution of cryptocurrency is more than $140 billion which gives a very nice message that the market cap is not a joke because you could easily see the coins around being demanded and traded. So, better invest rather than doubt on this recovery phase. Because time is running out to catch the train from the beginning point itself.

Moreover, I just see these types of discussions are just the FUDs to collapse the confident among new investors in crypto space as these kind of things are not having any proof to catch those exchanges while manipulating their volumes and price levels.

If you are talking on the entire cap then its real yet those numbers do indicates that there is really a heavy demand towards cryptocurrency.

The thing we are talking here is about Exchange volumes which are fake or real ones.My answer is, that its both yet manipulation and faking volumes is
part of their plans where higher volume do attracts new traders and those things are facts.

[whotookmycrypto]

I addressed this report in another thread about it, which you can read here: https://bitcointalk.org/index.php?topic=5122381.msg50243331#msg50243331

Essentially, their methodology is deeply flawed. They took an average trade volume and multiplied that against the average number of site visits, and claimed that that is each exchanges' true volume. This is a completely made up and meaningless equation, which is evidenced by their hilariously enormous spread of results - anything from 0.15% to 1300%.

Yes, a lot of exchanges report fake volume to make themselves seem bigger and more significant than they are, but we can't draw any conclusions from a report with such poor logic.

Hey @o_e_l_e_o, the same guys came up with a rating system for exchanges.

https://thetie.io/data-transparency/exchanges
Compilation of their tweet: https://threader.app/thread/1126849741848027136

Given how their methodology was deeply flawed for measuring trading volume, wondering what your thoughts are on their rating system?

Thank you.

[o_e_l_e_o]

It's fairly uninteresting, IMO.

Sure, you can get some useful information at a glance, but there are a couple of fields which are either not useful, or quite misleading. For example, the suspicious volume reports are based on their previous findings, which as I've already explained are based on using fairly shaky methodology. Also, having a "Formal Market Manipulation Policy" doesn't mean very much if you choose not to follow it and manipulate the market and insider trade anyway (e.g. Coinbase). I wouldn't use it to choose an exchange, as it ranks exchanges like Coinbase and Bitfinex amongst the best, and I wouldn't trust either of those to hold any of my money or details, ever.

[whotookmycrypto]

It's fairly uninteresting, IMO.

Sure, you can get some useful information at a glance, but there are a couple of fields which are either not useful, or quite misleading. For example, the suspicious volume reports are based on their previous findings, which as I've already explained are based on using fairly shaky methodology. Also, having a "Formal Market Manipulation Policy" doesn't mean very much if you choose not to follow it and manipulate the market and insider trade anyway (e.g. Coinbase). I wouldn't use it to choose an exchange, as it ranks exchanges like Coinbase and Bitfinex amongst the best, and I wouldn't trust either of those to hold any of my money or details, ever.

Thanks for the reply. Agreed that both Coinbase + Bitfinex shouldn't be amongst the best.

So just wondering, which source(s) do you use to help you decide on what exchanges to use? Haven't managed to find any good sources.

Thanks.

[o_e_l_e_o]

So just wondering, which source(s) do you use to help you decide on what exchanges to use? Haven't managed to find any good sources.

I'm not the right person to be asking, I'm afraid. I am extremely careful with my personal data, and so I refuse to perform KYC procedures pretty much anywhere. I have an unverified account on one exchange, but I couldn't tell you the last time I actually used it. Outside of that, I do the majority of my buying and selling peer-to-peer using platforms like localbitcoins or people I know personally.

If I was going to be picking an exchange, I'd primarily be looking on here and reddit to see how responsive they are to their customers' concerns, and what other real users (not paid for ads or articles) thought about them.

[bonker]

Yes you are right in this situation we are very confused to pick the right exchanges to exchange our investment but in most of the time when you people cannot choose the right one in sometimes for that day experience will play an important role about picking the right one for their exchanges.

[Dewi Aries]

Yes you are right in this situation we are very confused to pick the right exchanges to exchange our investment but in most of the time when you people cannot choose the right one in sometimes for that day experience will play an important role about picking the right one for their exchanges.

For who already know maybe can see it is fake volume or not. Because from some traders that i know which is my friends, they always know when a market have fake volume to attract traders or which one is not.

[BitHodler]

For who already know maybe can see it is fake volume or not. Because from some traders that i know which is my friends, they always know when a market have fake volume to attract traders or which one is not.

It's not that hard to be honest. It just requires you to know what to look for. I always check the exchange's web ranking and the traffic it generates, then put that against the volumes they report.

Additionally you can look at the volume bars and put these against the volume bars of exchanges such as Coinbase and Bitstamp. If they follow a similar path, then it's most likely an exchange that doesn't inflate its volumes.

Coinbene for example, a notorious volume cheater, they consistently generate the same volume bars, even when exchanges such as Coinbase see their own volumes decrease without anything going on in the market.

[traderethereum]

It is a known fact most of the information we found on site like coinmarket are not accurate and even the prices too so it is always better to check the trading volume by entering into their trading chart.

Yeah, that is what we should do if we want to know more about the coin moves so we can decide to trade or not.
Maybe the cryptocurrency exchange gives a fake volume but maybe after we check their trading volume in the order position, we could know more details.
But even if that is fake, if we don't use the data to analyze, then we will not get a fake analysis because we only use the data on the trading chart only to see the movements of the coin.