Good trading volume doesn't mean a token is good

[Vishnu.Reang]

Behold good trading volume doesn't mean a coin or token is good, i read in a thread where few people are saying if a coin has no volume means its a bad coin, well here we go, bad coins can have huuuge volume, you must have heard of bomb token? bomb token has good trading volume but guess what? it has no real use case, the volume comes from HYPE because its a deflationary tokens, people believed that the more a max supply of a token get decreased or burned off over time means they are GOLD tokens, it does bring profits to early adopters like they say but NO REAL USE CASES.

With bots controlling many of the smaller exchanges (and the DEX sites), nowadays it is not that hard to inflate the trade volumes. And on top of that, a higher volume can also mean that the promoters are dumping their tokens (especially if the exchange rate is lower than the listing price). Trade volume can be used as one of the parameters in deciding whether a token is good for investment or not. But it can't be the sole consideration.

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[alan2here]

I've seen many shitcoins that has good trading volume, I'm sure they fake it so yep good trading volume doesn't mean a good coins they can fake the volume. Better to research the project first and visit their telegram if it is active community so you will know if it is good to invest that coin.

In fact, fake trading volume is something that investors are difficult to distinguish when choosing to invest in altcoins because some exchanges such as P2PB2B, Latoken, and Vindax all use fake trading volume to stimulate investment demand. I think this is very dangerous because if the project is not good, you will certainly be affected greatly to profitability and liquidity difficulties.

I usually only invest altcoins at some major exchanges because they are exchanges that do not use fake transaction volumes but before investing you need to evaluate that coin in detail.

[anume123]

Good tokens are in high volume to improve the liquidity of the tokens and many of investors attract for it. Somehow it has a potential to increase the price of the tokens since many of investors willing to buy from it.

[StephenJH]

I've seen many shitcoins that has good trading volume, I'm sure they fake it so yep good trading volume doesn't mean a good coins they can fake the volume. Better to research the project first and visit their telegram if it is active community so you will know if it is good to invest that coin.

Making project research based on Telegram group members and social media channels is the last way I don't use it in my investment plans. Even good tokens have the tricky strategies for boosting their daily trading volume and the monthly turnover. Wash trading is the perfect case for boosting the turnover of any coin in small exchanges and CMC also count this volume as the genuine origin of turnover.

[oktana]

traders sometimes feel comfortable with one of the coins on the exchange, they don't even care much about the actual use of coins. Many comments write about bots, I have some friends who really like to condition the grid bot in reverse or opposite.

they analyze ways to measure every bot's movement, and fight the pattern of orders manually for profit.

[kaneki007]

I have often seen tokens/coins that have fake volume in the market, and now everyone can see whether the volume is fake or not. Like coinmarketcap which released a new feature that is liquidity that helps people to see volume

[jagaban]

Good volume does not mean a coin has use case. I agree. But good volume means it has liquidity and you can buy/sell with ease. The token FOUR has use case but try check the trading volume on Latoken exchange and you will be alarmed at how poor it is.

[hahay]

Trading volume does not guarantee coins or tokens have good prospects because the volume is still possible to be manipulated. So yes, volume does not need to be used as a reference because the most important thing is about the project and other factors that make coins desirable and continue to make good progress every time.

[TIDOVEE]

Trading volume does not guarantee coins or tokens have good prospects because the volume is still possible to be manipulated. So yes, volume does not need to be used as a reference because the most important thing is about the project and other factors that make coins desirable and continue to make good progress every time.

Yeah, many of us just rely on trade volume forgetting that it can be manipulated, and again the sometimes you suddenly see the token after few distributions other token suddenly become stolem or devalued. Although some of this could also be due to lack of investors. Many trade volume have become a bait for those who doesn't know it is more than that.

[pant-79]

Let me play the devil's advocate on this one... What shall it profit an investor to invest in a good project and lose all their funds? Good trading volume and Good Tech goes hand in hand, if one is present and the other is absent, the project is as good as dead because nobody would have any interest in using it, that's the sad reality of the Cryptocurrency space and if a project has a very good tech, raised a lot of funds and ended up dead on exchanges, I would just assume that the team is very terrible at funds management and j would see it as a shitty project anyways.

[target]

Having less volume to the coin's market means you can't a trader can't just sell his coins at once by picking the marketprice. Bombtoken is different, the only exchange that has good volume is the Hotbit. Of course you will stick to hotbit if you are going to concentrate trading to this token. Doing that on DDEX or Switcheo Network will be risky for you.

The total volume right now is just $42,004. Let's say, if you are to dump what you have which is more than $42k worth of bomb tokens, you can't do that. Buying back wold be another struggle for you.

[nekonyun]

In my opinion not if the trading volume does not determine a good coin, usually bad coins only have a large trading volume in a short period of time but if it is a good coin the trading volume will not go down remain up or stable this is the difference in shitcoin trading volume and good coin trading volume

[poornamelessme]

Low volume doesn't mean a token or coin is bad from a technical standpoint. Or even from a developer or real-world use (in theory) standpoint. However it typically means nobody cares about the thing, and it's kind of risky to use it for speculation as there isn't much of a market for it. Also depends on how low volume is defined... if it's 100-500K/daily, that's still okay-ish... if we are talking about $100/daily, that's problematic.

And yeah, high volume doesn't mean a bad coin is automatically good either. Problem of course is that so much volume is faked to begin with. There are a number of coins where I had to do a double-take on volume, wondering how such a low ranked coin (and a coin nobody has heard of before) was pulling in some insane volume numbers. Then I checked the exchanges... usually such coins aren't on a top exchange... more like exchanges it's wise to purposely avoid. It's clear in those situations that volume is fake or all wash trading.

[sapnu]

Having less volume to the coin's market means you can't a trader can't just sell his coins at once by picking the marketprice. Bombtoken is different, the only exchange that has good volume is the Hotbit. Of course you will stick to hotbit if you are going to concentrate trading to this token. Doing that on DDEX or Switcheo Network will be risky for you.

The total volume right now is just $42,004. Let's say, if you are to dump what you have which is more than $42k worth of bomb tokens, you can't do that. Buying back wold be another struggle for you.

I actually agreeing with that subject because there are lots of project that has a lot of volume but the price is not that good to buy, hold and sell. So I recommend to everyone who wants to invest their money in cryptocurrency that they should study every project they want to invest in. They should read the most important thing on the project and that is the whitepaper wherein all of the information and plans are stated there, you should also visit their website for you to gain more information about them. You should be aware because there are still scams project everywhere.

[crustycrab666]

The trading volume shows transactions that occur in trading activity in a particular section. This transaction involves buying and selling. High trading volume, can occur naturally because the tokens or coins are "in demand" to trade, some have to be boosted with bots, some are fake. Fake trading volumes are usually controlled by bots to boost sales, usually for shitcoin which is difficult to form market capacity, it is annoying to trade with this. The current price displayed is not appropriate.

[InwardContour]

The trading volume shows transactions that occur in trading activity in a particular section. This transaction involves buying and selling. High trading volume, can occur naturally because the tokens or coins are "in demand" to trade, some have to be boosted with bots, some are fake. Fake trading volumes are usually controlled by bots to boost sales, usually for shitcoin which is difficult to form market capacity, it is annoying to trade with this. The current price displayed is not appropriate.

Good trading volume shows demand for a token in most cases especially when it spans through a long duration, manipulated trading volumes do not really span through a long duration because the sole aim is mainly for the team or some big traders to pump and dump. In essence, I'm in the opinion that most times good trading volume signify a good token since traders won't really have interest in shit tokens, hence leading to poor demand. Looking at your write up, I wonder when exchanges can combat bot trading completely, for now there is lasting solution to this issue.

[JuliaJi]

of course, sometime members of team want to popilarize the token and making fake tradings with fake volume, so need to learn all history of trading of token

[ProteinBar]

I also think that Good trading volume doesn't mean a good token. Yes, a lot of words can be explained, but I find it hard to say. Can you explain it more clearly?

[lue wang]

Behold good trading volume doesn't mean a coin or token is good, i read in a thread where few people are saying if a coin has no volume means its a bad coin, well here we go, bad coins can have huuuge volume, you must have heard of bomb token? bomb token has good trading volume but guess what? it has no real use case, the volume comes from HYPE because its a deflationary tokens, people believed that the more a max supply of a token get decreased or burned off over time means they are GOLD tokens, it does bring profits to early adopters like they say but NO REAL USE CASES.

This is absolutely right I faced this situation. For hype news I hold a coin for long term in exchange but later dump from 500 USD to 56 USD. I don't wanna mention this token name but volume was really good.

[JeffBrad12]

I also think that Good trading volume doesn't mean a good token. Yes, a lot of words can be explained, but I find it hard to say. Can you explain it more clearly?

You know a good trading volume can be build up by hyping the coin and that was the case for so many project in the past. the token may be just another shit token or even just a clone of some already existing token with basically the same functionality but if there's some kind factor that could make people hyped about the project for example using popular people's name to their advisor and team of developers then it could gather the attention of the crowd. But then afterward people realize that the coin is basically a shit coin in disguise and it will lost the volume and popularity afterwards.