Binance could be Wash Trading Latest Statistics Show

[Danumsigwasan]

Binance’s apparently squeaky clean record from the often maligned Blockchain Transparency Institute (BTI) could be under threat as yesterday’s (October 23rd) of trading appear to show wash trading from the exchange.

With volatility being prevalent in Bitcoin’s price this has been seen in the trading volumes. Bitcoin has fallen, most clearly on the 25th of September and another drop in price on October 23rd at around 12:40pm UTC.

That exchange is Binance and the vast differences have led to suggestions that the exchange is participating in wash trading. Binance had an insurance fund over 10mn USD (as of 23 Oct 2019) and their latest daily trading volume passed 0.8bn USD. This is different to other exchanges, so lets look closer at the mounting evidence that Binance was practicing wash trading.

Bitcoin price volatility is usually seen in the statistics of exchanges. Most derivative exchanges like Huobi and Bitmex saw similar statistics. Yet one exchange has been largely different to the others.

The case for Binance Wash trading

As previously mentioned, exchanges usually see a shift in trading volume when the market is volatile.For example, OkEx saw its BTC spot price decline by 5% within the initial 4 minutes session on October 23rd and the quarterly Futures contract, dumped by 6.2% during the same time window.

The figures show below, OkEx, Bitmex and Huobis trading figures for the price drop on the 25th September and 23rd October showing a trading volume shift. Coincidentally, they are all fairly similar and vast.

OKEX

Bitmex

Huobi

Yet, Binance figures for the dates of Bitcoin price drops the trading differential is not as large or remotely similar. The October 23rd date illustrates this pertinently.

BitMex

This is without a doubt exhibit A for the wash trading claim, bt the evidence does not stop there. The proof only increases when you look at the data for a 4 hour period.

OKex

Huobi

Binance

The statistic in terms of Bitcoin traded remains largely similar between Bitmex (30K-100K), Huobi (20K-70K) and OkEx (20K-80K). Binance, on the other hand, is oddly stable and is far lower at just 5K. The pattern is also different.

A closer look at order book depth also brings up issues. As the figure below shows, BitMex had a quote size around 100 BTC on average ( [bid size + ask size] / 2), OKEx around 60 BTC while Binance was merely less than 2.5 BTC.

Bitmex

Therefore, with this statistic in mind, how can OkEx and Binance’s futures trading volume have Binance showing a greater amount yet their order book be less? Some would say this is a clear indication that Binance had washed some trading off the books.

OKEx

Binance

Conclusion

We will have to wait and see the verdict from the Blockchain transparency institute (BTI), a for profit company who listed a number of exchanges as wash traders. There are certainly some questionable statistics there though.

What do you guys think? Let us know in the comments below.

Source of article: https://www.asiacryptotoday.com/binance-could-be-wash-trading-latest-statistics-show

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[FantasyGold]

Honestly, I don’t know what to say.

It’s too complicate thing for ordinary person like me to understand…

[Freddy11]

I don’t like Binance whatsoever, especially with their recent actions. But this is criminal to say the least!!!

[KYCbench]

Interesting, but I don’t know how much reality is there in this?

[Andrew Parker]

Binance must answer about this, as this is serious allegations.

[Candycrush1129]

With how Binance is taking users for granted, I don’t think they care anymore.

So, I am not surprised.

[ChainCreator]

I won’t really say much, as unless these are rumors, I will not react.

[BlokbizICO]

Too early to say, there are no clear evidences about this. I am not an expert, but I don’t know how to be sure about this…

[royaltycoin]

Unbelievable!! I am stunned with reading this. I still can’t believe Binance could do something of this level

[minairia3]

Nice analysis and clearly depict a good wash trading. I dont know what to say and can't say if the whales are the one playing with it or the exchange itself. Ive been binance user ever since and I like how their market works. It's just a good sight of you mate regarding this, Im interested to know what will be the feedback of Binance once they saw this issue you've been shown us.

[makishart]

I agreed with your last point and it seems like that almost all of the major exchange sites are doing wash trading. Binance must have a lot of order book. this can be a very strong evidence about that. I feel something fishy with binance and another user has already revealed the manipulation in the regular token burn that has already made by binance recently.
Wash trade can't be avoided.

[CjMapope]

interesting catch, ya i think its pretty normal
im not a big trader, is there anything bad that can come from this?
i know whales can use it to make market moves, but thats just part of the game, no?
remember most normal market manipulation is not illegal in crypto, YET : /

[Yaunfitda]

So let's see if Blockchain Institute can catch this one when they release their next year's report.

It's gonna be pretty damaging if indeed if this is true based on your observation and analysis. Blockchain Institute has access to their API's to make such report. Binance reportedly making billion dollars already (accumulated), so it make sense if they have been doing this but wasn't catch at all.

[DaMut]

interesting catch, ya i think its pretty normal
im not a big trader, is there anything bad that can come from this?
i know whales can use it to make market moves, but thats just part of the game, no?
remember most normal market manipulation is not illegal in crypto, YET : /

Wash trading is not normal and illegal thing to do, it is prohibited because it can mislead the investors from knowing the real activity of users on the exchange and manipulating the market. That is true manipulation is part of the game, but we should not forget manipulation is illegal and if you get caught doing it you will get a penalty and might be arrested.

[TheUltraElite]

Binance is one of the top exchanges out there so this is not a surprise to anybody. However every exchange out there is no regulated and no SEC-equivalent to keep an eye on them. So if they are was trading then they will be doing it and will continue doing so unless someone grabs them at the throat.

With the use of crypto such incidents are more common. But the article posted here has a bit of suspicion in it to be credible enough. It may be just propaganda news trying to pull people away from Binance.

What I mean is that wash happens on all other exchanges too. Today its Binance tomorrow it can be some other CEX. A large wash traded volume is not a good thing but it is like a necessary evil here.

[Herbert2020]

all these companies are bullshit, i don't put any kind of value in the statistics and the reports they come up with. they are just there to make money and it is easy to bribe them to publish anything that you want.

as for Binance, it is some good work you did here. all exchanges are doing wash trading and all kinds of other fake and shady things behind the scenes. some of them are better at hiding it than others though, specially one like Binance has proven they are so good at it.

[Patrix_1]

Every single exchange is doing wash trading and I would not wonder if the most popular exchange is doing the same. I do not really care about wash trading, as soon as Binance management is handling hacks by restoring all the loses.

[masterrex]

Well im a Binance user since 2017 until now! Base on that statistics im not surprise, Since most of all so called big exchange has doing that I dont think thats still relevant today, There were lots of exchange to choose from so why just single out Binance for that matter, Wash trading are exist in every cryptocurrency exchange thats my opinion.
For the better relief let those relevant audit firm do the check up! 

[lobat999]

Unless otherwise Binance will allow an independent third party audit on its trading platform, its source codes and internal records, the public will never cease to allege that the exchange is indeed doing wash trading since its a common practice nowadays among exchanges.

Now I feel like the Government or any other entity that has the power to do it might intervene in behalf of the community. 

[Silberman]

interesting catch, ya i think its pretty normal
im not a big trader, is there anything bad that can come from this?
i know whales can use it to make market moves, but thats just part of the game, no?
remember most normal market manipulation is not illegal in crypto, YET : /

Maybe I am wrong but those laws should apply to cryptocurrency exchanges as well, if we believe cryptocurrencies are a way to exchange value then it is fair to assume all the laws that could apply to the forex and stock market should apply to this market as well, if this is true then Binance could get in trouble, but I am more worried about what this means for the price of bitcoin, the last incredible increase in the price of bitcoin was the result of the manipulation of Binance and other exchanges?