Wash trading with crypto exchanges

[LeGaulois]

Wash trading is when someone buys and sells the same pair simultaneously to increase the trading volume. It's a pure form of market manipulation. Some exchanges use their own bots while some others outsource. Exchanges usually receive a lot of offers to manipulate the market on their website.


Exchanges ranking if we use Coinmarketcap data



Exchange ranking without the noise



Binance is the first by volume but still has a 10% wash trade. And while a lot of people were bashing Kraken, it's one of the most trusted exchanges regarding wash trade.

(data comes from the blockchain technology institute https://www.bti.live/reports-april2019/)

[1715363495]

1715363495

[1715363495]

1715363495

[1715363495]

1715363495

[legendster]

This is no new data. It's been discussed widely in the last few weeks. However, there's one thing to remember, most wash trading is done by projects to boost of their own token's daily trade volume. Exchanges merely facilitate this.

[traderethereum]

I don't think that will be a problem for me.
As long as I can take the profit from the trade, I don't care of what the bots doing because I think if I can follow the bot moves, then I can have a chance to make a profit even for just a small profit.
But yes, I am sure that will happen in all exchanges especially if, in that exchanges, whales have stayed and trying to buy and sell the coin.

[Genemind]

That's their way of manipulating exchanges just to make their currencies more appealing to traders which can attract more investors but it still has a negative effect on traders as well.
It's deceiving and confusing at the same time which may lead traders to create wrong decisions in trading because they could overvalue and manipulate those coins.

[feryjhie]

This is no new data. It's been discussed widely in the last few weeks. However, there's one thing to remember, most wash trading is done by projects to boost of their own token's daily trade volume. Exchanges merely facilitate this.

but if you think that the most wash trading is to boost the daily trading volume. So in each exchange that got mentioned above and the most daily trade is bitcoin.
so why does anyone will boost bitcoin daily volume which is already high from all exchange?

[ryzaadit]

-snip-

How you can follow the BOT, you doing manual right. The problem of wash trading is, we can see the volume was really high but the order its really shit example at Digifinex the order its really small even i can't sell it my asset for only 100$. That's amount was pretty low for Top Rank 10 Exchange by Coinmarketcap, that's why i really hate this kind of exchange.

[Ailmand]

That's the reason why we have to be observant and keen on choosing a reputable exchange. Fake volumes could deceive traders. It's just disappointing that most trading volumes that we see are already manipulated but as long as we stick to our simple trading strategy, we would still be able to trade and gain without being deceived by fake volumes.

[Haunebu]

Fake volumes could deceive traders. It's just disappointing that most trading volumes that we see are already manipulated but as long as we stick to our simple trading strategy, we would still be able to trade and gain without being deceived by fake volumes.

Its not that simple. Fake volume is not a threat for most people and everything in the crypto market is manipulated and centralized to an extent which is why investors won't just pull out their funds just because of manipulation in this aspect.

[Hamphser]

I don't think that will be a problem for me.
As long as I can take the profit from the trade, I don't care of what the bots doing because I think if I can follow the bot moves, then I can have a chance to make a profit even for just a small profit.
But yes, I am sure that will happen in all exchanges especially if, in that exchanges, whales have stayed and trying to buy and sell the coin.

Following bots move? I don't think that would really be an easy one.

I'm not really surprised for this wash trading yet this been happening and rampant on exchange market nowadays.If you do have keen eyes then you would probably
spot on these things.This is why exchange is always been shady where generating volume just for the sake of possible attraction.

[ololajulo]

same coin with exchanges with fake volume still remains on the list. they may not get better cause they have already made blacklist of traders and everyone is leaving. they make their money in ridiculous way, through high transaction fee and sorts, now they beg team to get token listed on their exchanges to exploit traders. wash trading is least of their worries while people monitor exchange visits daily Everyone is learning and moving to reliable exchanges and the decentralized exchanges.

[legendster]

I don't think that will be a problem for me.
As long as I can take the profit from the trade, I don't care of what the bots doing because I think if I can follow the bot moves, then I can have a chance to make a profit even for just a small profit.
But yes, I am sure that will happen in all exchanges especially if, in that exchanges, whales have stayed and trying to buy and sell the coin.

Yeah? And then come running when the prices crash unnaturally due to market manipulation. Its high time people get their act together and start acting like a wise community and not just greedy nut jobs.

The more people start saying that they don't care about such things, the louder we as a community say to market manipulators to come and screw with our money. Are you sure you want to be part of that problem?

[akamit]

1% real volume is insanely low compared with the reported volume... That's really insane.

However, there's one thing to remember, most wash trading is done by projects to boost of their own token's daily trade volume.

Maybe Trading Competitions are playing a vital role for fake trading volumes?

[legendster]

1% real volume is insanely low compared with the reported volume... That's really insane.

However, there's one thing to remember, most wash trading is done by projects to boost of their own token's daily trade volume.

Maybe Trading Competitions are playing a vital role for fake trading volumes?

With trading competitions, they are not really trying to hide it. The very reason a trading competition takes place is to boost the coin's traded daily / weekly / monthly volume, and I think that's okay as long as everything is fair.

But a trading competition attracts early investors and whales that always have the upper hand. Also, they're financially motivated to win the competition given how most cryptos that conduct trading competition start to see their asset value drop from its face value when it was first launched.

[Maslate]

We know this is happening, that's why we have to be careful in choosing an exchanges.
Based on the list now in coinmarketcap, it wasn't Binance as the largest exchange, but the hacker knows the real largest exchange and that's why Binance was hack.

Let's just be more educated, and OP although I read this already, I'd like to thank you effort for sharing this.

[davis196]

What's that "BTI verified" sign?How can this BTI company verify that those exchanges aren't faking their trading volume?Or this is just some marketing trick so more people might choose the crypto exchange platforms that are "verified",while they fake their trading volume too?
I will continue to repeat that centralized crypto trading platforms are no better than banks.

[LeGaulois]

What's that "BTI verified" sign?How can this BTI company verify that those exchanges aren't faking their trading volume?Or this is just some marketing trick so more people might choose the crypto exchange platforms that are "verified",while they fake their trading volume too?
I will continue to repeat that centralized crypto trading platforms are no better than banks.

It's not the first research about wash trading but this time they used different algorithms for several months. Several exchanges use the results to fight the wash trading occurring on their platform. Huobi, for example, is one of the exchanges with a lot of WT but they decided to take actions, Huobi even joined DATA for this reason.

[SirLion]

This list is not full, as there are some exchanges with real volume besides this list.
Wash bot trading is a double-edged sword. Fake volume can attract noobs, but can scare away experienced investors and it won't last long.
As a promoting launching step it can take place, but afterwards if the volume will not became real - we can suppose just one result - only strong players will remain in this game.

[el kaka22]

I have seen sort of something like this. Not something like this but exactly this but not on a big scale, something around 100 bitcoins per day on wash trading volume.

They are not really that much life changing and done only to increase trading volume to make it look like that exchange is good but make it look like that coin is not dead. The coin I have seen was given a wash trading auto bot and he had a lot of his own coin so of course he sold and bought himself and even though he lost a bit of bitcoin most of it was recovered by the increase of his coins price and that resulted with him profiting thanks to his coin always being on top 5 volume and now he doesn't have to do it anymore since it got famous and people do it for him.

[traderethereum]

-snip-

How you can follow the BOT, you doing manual right. The problem of wash trading is, we can see the volume was really high but the order its really shit example at Digifinex the order its really small even i can't sell it my asset for only 100$. That's amount was pretty low for Top Rank 10 Exchange by Coinmarketcap, that's why i really hate this kind of exchange.

When you check on the market, you will see one or two or three order to buy or sell will move so fast than the others. It will change in many times, and I presume that is the bot that will try to move the price to go up or down. When you can see a chance between the changing of the price, you will know what I mean

-snip-

Following bots move? I don't think that would really be an easy one.
I'm not really surprised for this wash trading yet this been happening and rampant on exchange market nowadays.If you do have keen eyes then you would probably
spot on these things.This is why exchange is always been shady where generating volume just for the sake of possible attraction.

Although that is not easy, it just needs more practising to follow the bot
I am sure you can do that if you try more than 5 times because you will see a pattern from the bot so you can define by yourself on what price you should buy or sell.

-snip-

Yeah? And then come running when the prices crash unnaturally due to market manipulation. Its high time people get their act together and start acting like a wise community and not just greedy nut jobs.

The more people start saying that they don't care about such things, the louder we as a community say to market manipulators to come and screw with our money. Are you sure you want to be part of that problem?

I am sure that in someday, it will change by itself, no need to push or doing anything, just follow the ways and it will be solved.
Although the price crash unnaturally as you said, the market will survive and it will back to the normal price without a problem, but there will be a time to see the price will be back to normal.
Even if there will be too many manipulators came and screw with our money, the market will be strong enough to handle that manipulator. We already saw the market stay survive and if you see the market of cryptocurrency especially the bitcoin market, the market was survived in the hardest situation, and it came back to the higher price although it slowly.

[leea-1334]

Interesting to see a lot of these reports come up time and again,,, and all of them are showing Binance to have the highest percentage of "Real Trading"compared to others. Makes me think, if Binance itself has anything to do with funding these reports to discredit other exchanges. It is not that I believe the others are good. It is that I believe all exchanges deal with wash trading,,, if not themselves, then their users. Especially if the platform like Binance has its own token!