Why do exchanges get away with faking trade volume?

[tvplus006]

I have wondered this too myself on why exchanges playing this deceit of falseness with trading volume are left unpunished. It's a burden on the entire crypto space.

Exchange are doing this to attract traders to use their platforms, you will only realized this once you are already being trapped, there's a big need of doing your research about both the projects and the exchange that you'll going to use before you take your chance to avoid losing your money.

I didn't notice when this feature appeared on Coinmarketcap, but a couple of days ago I was surprised by this rating. This way you can track the volume of coins you are interested in on various exchanges. But I would be interested to know how coinmarketcap calculates these values.

[Kelvinid]

We can't make all things to be good to be true. That is in a real case scenario.

And with that fake volume show some interest to the people, definitely, it makes sense but seeing a bad effect on it, not only in a particular exchanger who abuses that but as crypto in general. This why newcomers have that struggles to find good and reputable exchangers because if we just search online, a lot or exchanges showing impressive reviews, a huge market volume which is really enticing.

It is really tricky and it makes a reason why people badly slip into fake exchangers with fake volume as being manipulated.

[wxa7115]

Does anyone else agree that it's way too easy to open an exchange nowadays, you just assemble a team and buy some trading platform software from a third party and set up your site, compliance be damned. And then some of them do things like listing scamcoins that can be predicted to become worthless, ripping off investors. If a stock were to do this, their owners would go to jail.

And then other exchanges blatantly misreport their trading volume as much higher than it actually is. If a regulated forex platform would to do this, they would be heavily fined.

Sure forex has their own share of scam platforms but in my opinion it is way too easy to set up an crypto exchange without worrying about the legal aspects. There should be more scrutiny and regulation around exchanges.

This is not as difficult to guess, exchanges can get away with it because many users decide to turn a blind eye, if you want to use one of the most reputable exchanges out there you're probably going to have to go through know your customer policies and even if you don't have to go through those policies you will not have access to all kind of exotic coins that are out there.

Traders and investors decide to ignore the fake volume because they prefer to avoid know your customer policies and to trade coins that we know will crash in a matter of weeks or months with the hope of being one of the few that earn money out of those coins, as you can see the old model of supply and demand is at work, so if there was not a demand for exchanges like that then they will not exist.

[carlfebz2]

We can't make all things to be good to be true. That is in a real case scenario.

And with that fake volume show some interest to the people, definitely, it makes sense but seeing a bad effect on it, not only in a particular exchanger who abuses that but as crypto in general. This why newcomers have that struggles to find good and reputable exchangers because if we just search online, a lot or exchanges showing impressive reviews, a huge market volume which is really enticing.

It is really tricky and it makes a reason why people badly slip into fake exchangers with fake volume as being manipulated.

For people that dont have much time on making out some searches would definitely end up on exchangers which arent that known.Yeah you're right that faking out numbers will really give out

impact which people do really have that kind of impression that theyre dealing with a good one since it do shows huge volume which can signifies that there are lots of users

who do trade on such place.sooner or later that user will surely realize that he had dealt on the wrong place.This is why its important to have verification from time to time.

[Shasha80]

If you look at the number of exchanges currently in circulation it has proven that opening exchanges is very easy.
But it's not easy to draw interest of many users, there should be a good promotion to make more users join the new
exchanges. One way to attract interest users by making faking trade volume. Because some users especially newbies
choose exchanges based on trading volume, even though they are nowadays easily manipulate trading volume with bots.
So avoid choosing exchanges based on volume trading.

[imstillthebest]

If you look at the number of exchanges currently in circulation it has proven that opening exchanges is very easy.
But it's not easy to draw interest of many users, there should be a good promotion to make more users join the new
exchanges. One way to attract interest users by making faking trade volume. Because some users especially newbies
choose exchanges based on trading volume, even though they are nowadays easily manipulate trading volume with bots.
So avoid choosing exchanges based on volume trading.

volume is essential when trade and if not volume , what would be the next thing to look for ? with the huge number of scams thats a way to tell that they can attract people easily  .

 so many exchanges that are fake are already got busted , mostly with the issue of fake volume .  they didnt get away with it .   if only people will only buy and sell coins on the trusted exchange no one will get scam , thats also thier fault .

[Dorodha]

In making new exchanges we need to be careful about trading volumes and be careful In the case of trade these are not equally affected everywhere. Due to the dependence of the trading volume the exchanges move away with the amount of fake trade. Having knowledge of other sites will reduce the risk and it will be much easier to find good promotions every site has a specific logo. If you follow the logo it is very difficult to copy.

[bearexin]

Because nobody can stop them? I mean that looks like the only reason at all, if there was power of people that could stop exchanges stop doing that, I would think that we would all do it, however there is no way that people could stop it, neither does the competition so they end up doing it without any consequences.

On top of that, when one place does it and others don't, that place gets an advantage and everyone thinks they are doing great, however other places wouldn't accept it, so they end up doing it to level the playing field as well, which is why right now it is so common since places basically all try to mimic each others shady stuff in order to get ahead but if not at least not stay behind. All of this could end if somehow there is regulations on them.

[Spaffin]

Because nobody can stop them? I mean that looks like the only reason at all, if there was power of people that could stop exchanges stop doing that, I would think that we would all do it, however there is no way that people could stop it, neither does the competition so they end up doing it without any consequences.

On top of that, when one place does it and others don't, that place gets an advantage and everyone thinks they are doing great, however other places wouldn't accept it, so they end up doing it to level the playing field as well, which is why right now it is so common since places basically all try to mimic each others shady stuff in order to get ahead but if not at least not stay behind. All of this could end if somehow there is regulations on them.

All kinds of manipulations with trading volumes, this is a kind of fraud on the part of the management of the cryptocurrency exchange. I believe that their actions may fall under some article of the Criminal Code, but whether they can be held accountable is a completely different issue that requires careful study.

[mersal]

Does anyone else agree that it's way too easy to open an exchange nowadays, you just assemble a team and buy some trading platform software from a third party and set up your site, compliance be damned. And then some of them do things like listing scamcoins that can be predicted to become worthless, ripping off investors. If a stock were to do this, their owners would go to jail.

And then other exchanges blatantly misreport their trading volume as much higher than it actually is. If a regulated forex platform would to do this, they would be heavily fined.

Sure forex has their own share of scam platforms but in my opinion it is way too easy to set up an crypto exchange without worrying about the legal aspects. There should be more scrutiny and regulation around exchanges.

Its easy to make an exchange on your own but it is not going to be easier to make people trading on it, even the exchanges are legit and promoting them for huge money are struggling to get their traders.And exchanges with low transaction and withdrawal fees attract the users more.

And about the fake volume, because they wanted to make into the top of the list so they are giving fake volume for most of the coins by trading internally with their bots just to record the orders.