What is the solution about CMC fake volume..?

[princerepon]

My morning starts with visiting CMC (Coin Market Cap). It's not only me, maximum people in this forum do that too i guess. But my thought is how much trust able CMC for trading or knowing a new exchange or coins..? I mean couple of shit exchange sometimes make top in CMC. People will easily confuse that which exchange or coins are safe investment for that kinda fake volume. So my question is...

1. How can an exchange create such a fake volume..?
2. What is the best solution for this problem..?
3. Are CMC authority take any steps for those problems yet..?
4. If they'll not take any steps will it be a good idea to ignore CMC and find some new Market Cap website like CoinGecko..? (Though i don't know how much trust worthy this website also)

Please feel free to share your thoughts.

-TIA  

Best Regards
-Prince

[rijaljun]

3. Are CMC authority take any steps for those problems yet..?

Two different steps, two different years.

• CoinMarketCap Announces Changes to Counter Fake Volume Concerns
• CoinMarketCap is set to adjust crypto ranking standards, release metric to weed out fake volumes

Changes nothing.

[Harlot]

Don't you even counter-check the volume in your own exchange or charts in tradingview? Simply just relying what you see in coinmarketcap is a careless act of a trader to do. It's like basing a trade on only one source which will be totally inaccurate if you ask me. Some exchanges do come a pre-built chart on their platform so why do rely on coinmarketcap to see what are the gainers/losers? If you are looking for alternatives marketcap.cc is claiming to have remove fake volume on their data and I think it's better to have a second source rather than basing it purely on cmc.

[iamaruf]

1. How can an exchange create such a fake volume..?

Please feel free to share your thoughts.

-TIA  

Best Regards
-Prince

I don’t know others questions answer. They use bot create fake volume.these bots trade automatic to create high volume. Website admin or there mods control this bots.even maximum Exchanger use bots to create high volume in there exchange.                   

[pixie85]

Exchanges can execute fake trades between its own addresses and boost volume this way. It doesn't cast them anything because they aren't paying trading fees for their own fake trades

CMC is excluding exchanges who are proven to be faking volume. You can see some exchanges on CMC that are listed but there's no data next to them and those exchanges are not counted because they are faking. It's hard for CMC to prove anything to bigger exchanges that already have some high real volume so I don't think they will delist every single suspect. Probably 80% exchanges fake volume. Chinese exchanges were faking it in 2013 and 2014  

[bL4nkcode]

What is the best solution for this problem..?

Don't prefer using cmc only as a tool for your trading data gathering and analysis, use other market cap ranking sites too here some altenatives. And even from search google for best results of experience and review for some coin and exchange to use.

[Immakillya]

I don't know if CMC does the volume checking. It's funny because some of top on the list of cryptocurrency exchanges are unknown or not really popular. I think CMC are just after the money. They should have top exchanges with fake volumes too. Better make a poll here and see what exchange give them a better experience. I don't trust CMC. So better do something to make things clear what exchange is suitable for you. Making a poll here is a good way to start.

[tenakha]

1. How can an exchange create such a fake volume..?

The false inflated volume by the trade of bots can belong to this.

2. What is the best solution for this problem..?

Frankly, CMC does not have much thing to do in this regard. Devs set some criteria for exchanges to be added to list, but there are some differences that you can not take against them. If you wish, try other options like coinlib.

3. Are CMC authority take any steps for those problems yet..?

IMO they are not pleased with this situation too. Because it does not bring them anything to keep site visitors away.

4. If they'll not take any steps will it be a good idea to ignore CMC and find some new Market Cap website like CoinGecko..? (Though i don't know how much trust worthy this website also)

It is your choice, use whichever suits you best. I guess CMC will not be mad at you for that. lol

[deadsilent]

Don't trust CMC. Make your own way to know what exchange is the best. Although all existing Exchanges does have fake volume. You can still know it just by asking people what's the best Exchange ever exist. But if you ask me what is the best Exchange so far? It's Binance. Binance does have many trading pairs that you can use. Actually, they announced they are now have Nigerian currency/crypto and Russian Rubble/cryptocurrency pair. That's a major development for Binance. They just don't settle on few pairs.

[cryptothreads]

I don't know if CMC does the volume checking. It's funny because some of top on the list of cryptocurrency exchanges are unknown or not really popular. I think CMC are just after the money. They should have top exchanges with fake volumes too. Better make a poll here and see what exchange give them a better experience. I don't trust CMC. So better do something to make things clear what exchange is suitable for you. Making a poll here is a good way to start.

I think the fake trading volume is difficult to check and any exchanges are using this to get high rankings at CMC. As far as I know in November there will be very special information and will certainly eliminate the fake trading volume at some exchanges. I hope this can go smoothly because a lot of bad exchanges like Latoken, P2P, Vindax always have very high ratings in this market.

Currently, I only trust the top exchanges that are chosen by people because these are exchanges with large trading volumes and can liquid at any time if you want.

[marcbitcoins]

CMC is only a tool for trading in which we should not rely everything to them as we don't know if the exchanges has an system upgrade in which CMC will not be able to detect the changes of their volume immediately therefore i suggest that we do monitor the exchanges with diligence  to avoid their fake volumes.

[NathanJB]

Coinmarketcap's reputation is being tarnished by all these exchanges reporting fake volumes. They should be the one to initiate an effort to cleanse its list of scam exchanges. I think they should need to ask indubitable proofs and evidences from exchanges that their submitted volumes are not fake. Any hint that there are fake figures in their reports should be enough for them not to get listed in coinmarketcap.

[jakelyson]

CMC is not enough to make good trading decisions anyway. So a good trader should not just rely on CMC but should do deeper research and analysis themselves.

Currently, I only trust the top exchanges that are chosen by people because these are exchanges with large trading volumes and can liquid at any time if you want.

Even top exchanges have trading bots that can be used to pad their volumes. All you can do is analyze which pairs have enough real people trading to offset the trades of bots.

[binhvo1505]

My morning starts with visiting CMC (Coin Market Cap). It's not only me, maximum people in this forum do that too i guess. But my thought is how much trust able CMC for trading or knowing a new exchange or coins..? I mean couple of shit exchange sometimes make top in CMC. People will easily confuse that which exchange or coins are safe investment for that kinda fake volume. So my question is...

1. How can an exchange create such a fake volume..?
2. What is the best solution for this problem..?
3. Are CMC authority take any steps for those problems yet..?
4. If they'll not take any steps will it be a good idea to ignore CMC and find some new Market Cap website like CoinGecko..? (Though i don't know how much trust worthy this website also)

Please feel free to share your thoughts.

-TIA  

Best Regards
-Prince

1) fake volume is made up of bots in exchanges. For large exchanges, they also always create bots to create more liquidity for exchanges. It always trades non-stop every 10 seconds or 30 seconds.
We have almost no solution because there are no rules in the crypto market. But anyway, you can still liquidate a lot of large exchanges and traders feel the same way, so we have no one to sue for fake volumes.

[Pearls Before Swine]

Two different steps, two different years.

Changes nothing.

I'm not sure what they could do anyway.  There are many exchanges and so many coins on the market that it would be a nightmare to verify legitimacy even if they were so inclined to do more about the problem.

It sucks that you have to take the volume numbers with a grain of salt, but so be it.  This won't change until these exchanges start getting honest, and I doubt that's going to change.  Ever.

1. How can an exchange create such a fake volume..?

The volume isn't actually created, just the number they report.  It's a lousy thing to do, but it couldn't get any easier.

[Dewi Aries]

I never rely my trading activity only from CMC. Usually i use CMC only to see price of a coin in each exchanger that still listed that coin. Only that and nothing else, i think we must back to old way when we must analyze by ourself. When i trading in Bittrex and Poloniex in past, i only rely on chart although i am not really good at it in any my trading activity.

[zeze18]

I think CMC could not detect between real transaction and bots transaction because those 2 are similiar and the bost also using people's name like usual.
So, we have to experienced trading on the market first before we can feel the volume on the market is from bots or no. Or we hope CMC can handle those bots with their engine in the future

[Shasha80]

My advice is not to make decisions based on just one source, I usually when looking at data in CMC I often compare with another site.
So if something goes wrong, it will be found out soon because the data is different. Exchanges can make fake volume, because in these
exchanges there are bots who take part in trading. Problems with exchanges with fake volumes can be overcome by always comparing
data from two different sources, another solution asking for input from the trading community. Usually in the community often exchange
experiences about various kinds of exchanges. In conclusion, gather as much information as possible from various sources, we will study
later will find where good exchanges and bad exchanges.

[Wintersoldier]

Coinmarketcap's reputation is being tarnished by all these exchanges reporting fake volumes. They should be the one to initiate an effort to cleanse its list of scam exchanges. I think they should need to ask indubitable proofs and evidences from exchanges that their submitted volumes are not fake. Any hint that there are fake figures in their reports should be enough for them not to get listed in coinmarketcap.

Coinmarketcap might not be providing the exact information concerning volume of the market, some of us might think there is a manipulation of the volume. But I can guarantee, there's no system that is perfect and there are some instances that CMC is having issues too. If we really want to get the most reliable source, cross reference different exchange and see the average volume you need. But for me, If I will just look how the market is going, I still prefer visiting CMC for the sake of knowing the general market condition.

[tippytoes]

I never rely my trading activity only from CMC. Usually i use CMC only to see price of a coin in each exchanger that still listed that coin. Only that and nothing else, i think we must back to old way when we must analyze by ourself. When i trading in Bittrex and Poloniex in past, i only rely on chart although i am not really good at it in any my trading activity.

CMC is just for quick reference and not an accurate website to refer on. Though it is also one of the sites that I really go into everyday, but if I want better info, I check also coingecko. They will give you normalized volume. Though I don't know exactly their metrics on how to trim down the volume but I guess, they are giving values that are near reality.
Right now, we can't do anything about CMC's data, but it is yourself that can save you from misleading info. Do your own homework and analysis for specific coin that you want to trade.