According to the research by Forbes, more than half of the trading volumes in the cryptocurrency market are fake.
In a recent Forbes study, it was reported that a significant portion of the data on the cryptocurrency markets was faked. Especially on exchanges and data providers from lack of control It seems that this lack of data caused by a great misconception in the sector. According to the results of this flow of misinformation due to lack of reporting and regulation, more than half of the market trading volume is highlighted as inaccurate or inflated:
More than half of all reported trading volume is likely to be fake or of no economic value. Forbes estimates the global daily Bitcoin volume for the industry to be $128 billion on June 14. This corresponds to 51% less reality than the $262 billion data-providing sources cite.
In the details of the research conducted on a total of 157 exchanges, it is stated that the wrong data flow in question There are 2 main reasons: Unregulated small exchanges and wash trades that directly mimic trade volume data.
Offering data about cryptocurrencies CoinmarketCap Sites like these are known to give rankings based on volume. This is how it works for a token in such an exchange. It seems that small-scale exchanges themselves move to the top in terms of market volume and to provide visibility they present inflated and directly imitated data as if they were real. At this point, the trading volumes of small exchanges that are unregulated and offer fake data for the customer race are almost 80-99% rate of “balloon” contains transaction volume.
The second largest inflation data presented is “wash trade” due to transactions. Wash trades can be translated as a wash trade and explained as a form of market manipulation where a whale simultaneously sells/buys the same financial instruments to create a misleading, artificial activity in the market. In addition, such transaction movements can be used in pump/dump operations and are considered illegal in many countries.
Although this research presented by Forbes does not give us complete information about all cryptocurrency volume data, since it is specific to Bitcoin, it may not be right to think that the remaining transaction volumes are very different from this.