Cryptocurrency News

Fake crypto transactions: the real face behind


The world seems to be riding in full speed on the crypto transaction pathway. But the picture seems to change a lot if we look into the statistics. Not depending just on the statistics shown THE TIE made research whereby comparing the calculated values and the reported values and they show a vast difference. the number of fake crypto transactions out-numbers the real with a vast margin.

According to the report of The Tie, 90 percent of the crypto exchanges reported trade volumes may be incorrect. Researchers gathered a data of almost 97 users, researching on the same it came forward that a majority of transaction volumes may not really exist.

This picture came into the front because of a calculated study of lesser known exchanges and well-known businesses such as Binance and Kraken. The Tie had written in one of their comments that, “In total we estimated that 87% of exchanges reported trading volume was potentially suspicious and that 75% of exchanges had some form of suspicious activity occurring on them” to which the organization added, “If each exchange averaged the volume per visit of CoinbasePro, Gemini, Poloniex, Binance, and Kraken, we would expect the real trading volume among the largest 100 exchanges to equal $2.1 (billion) per day. Currently, that number is being reported as $15.9 (billion).”

These are vast differences to fake. Reporting $2.1 million as $15.9 billion was a game given off. But still, the big shot companies decided to play along. This isn’t the first time that exchanges have been caught for fake volume reporting. A similar report issued in March 2018 warned about similar problems.

The last time and now Binance CEO Changpeng Zhao argued taking along with himself other industry participants. The mention of CoinMarketCap added to the confusion. He answered the “Why do exchanges fake volume?” question on Twitter after The Tie published their report. His tweet said. ” CoinMarketCap is the highest traffic website in our space and the biggest referrer for all exchanges. Ranked high on CMC has benefits for getting new users. BUT at the expense of DESTROYING CREDIBILITY with pro users”

There have been repeated such revelations about the fake volumes and a lot more. Recently Cointelegraph reported that there has been a drop in the exchange volumes and it is the lowest since May 2017.

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