New research submitted to SEC by Bitwise Asset Management claims that 95% of BTC's reported volume is counterfeit. According to Bitwise, only 10 exchanges have a real volume … but not all bad news about the battlefield market.
95% of Bitcoin Exchange volume is fake
The allegations of washing and fake volumes are nothing new. Groups such as the Blockchain Transparency Institute are publishing more and more detailed reports on the issue. But the assumption that 95% of the volume is fake means a new high (or low) point.
1/ New Research from Us @BitwiseInvest .
As part of the 226 slides submitted to the SEC regarding our ETF submission, we made a first-of-a-kind analysis of * order book data * of all 81 stock reports> 1 million US dollars in CMC's BTC.
TLDR: 95% of the reported volume is fake, but LOTS of good news! pic.twitter.com/TuXLlDCRyP
– Pobito (@BitwiseInvest) March 22, 2019
According to the survey, only ten exchanges reporting CoinMarketCap's average daily volume over $ 1 million are real. These are Binance, Bitfinex, Kraken, Bitstamp, Coinbase, BitFlyer, Gemini, itBit, Bittrex and Poloniex. The report ruled out the Korean exchange and Cex.io passed the test, but reported less than $ 1 million. exchange of suspicious. When comparing the two sides to one another, some exchange counterfeits seem blindingly obvious.
With a true distribution of stock exchange trading between buying and selling, it will be accidental; the amounts will be both large and small, with a significant number of "round numbers". The volumes will fluctuate with time, with heavier and quieter periods; and the distribution (difference in purchase and sale price) is usually only a few cents.
On the other hand, suspicious exchanges often have deals that come in pairs (one purchase and one sale). Real transactions with such a model are unlikely. Transactions are for similar amounts, without very small deals, and round-the-clock deals, despite human preferences for round numbers. The volumes will remain approximately constant for a certain period of time or may drop out completely for hours or even days. But in reality it's just a good news for them. Because this study was actually submitted to the SEC in support of the Bitcoin Bitcoin ETF application. So the good news is that despite the assumed 95% of the volume that is fake:
The real battlekin market is considerably smaller, more orderly and more regulated than it is. The bad news, of course, is that now the fraudulent exchanges know how to adjust their bots to avoid discovery. This Bitwise study will have a positive effect on their Bitcoin ETF application? Share your thoughts below !
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