A new study has found that the majority of Bitcoin trading is a hoax.
Bitwise published an analysis last week, which leads to doubt the legitimacy of Bitcoin trading. According to the findings, 95% of unregulated digital exchanges tend to fake Bitcoin spot trading.
Here’s wash trading explained. The term describes someone buying and selling the same stock at the same time. In this case, Bitcoin. This, in turn, leads the market to the appearance of an activity, which means that it is not real.
Wash trading is how unregulated exchanges generate sky-high trading volumes. The study reports 71 out of 81 exchanges to be wash-trading.
Such unregulated exchanges report ca. $6 billion in average daily Bitcoin volume. According to Bitwise’s study, only $273 million of that volume is legitimate.
Crypto exchanges may be tempted to publish fake data for certain reasons. They are looking to attract a new customer base, more investors and ICOs at any cost.
“People looked at cryptocurrency and said this market is a mess; that’s because they were looking at data that was manipulated,” said Matthew Hougan, global head of research at Bitwise. “When you cut away the echo chamber of these nonsense numbers, it should be an efficient, well-arbitraged market.”
“It is surprising that an exchange with almost 18 times the volume of Coinbase Pro would have a spread that is 1,500 times larger,” Bitwise said in the report.
CoinMetro is as transparent about its business and trading volume as a crypto startup can be. Our soon-to-be-updated website features an entire section on Transparency. Check it out if you’re looking for any particular information – from our background to our token sale 2017/2018.
We are your reliable partner in the world of crypto, redefining the industry with our next-generation products and services. What makes us different from our competitors is that we appeal to beginner, intermediate, and advanced crypto enthusiasts. If you’ve never bought a single coin or token, CoinMetro is the best reason and place to start!
If you haven’t joined our tribe yet, hop on board!
The CoinMetro Team