Forbes report: More than half of Bitcoin transactions in exchanges are fake!
In its new report, Forbes magazine claims that digital currency exchanges do not provide accurate statistics about the volume of their Bitcoin transactions, and the real figure is much lower than what they say. Forbes says that Binance is one of the biggest exchanges that are involved in this issue.
To Report Finbold, the widespread prevalence of wash trading and the lack of sufficient supervision of digital currency exchanges are two of the most common criticisms of Bitcoin and digital currency trading.
Forbes published a new research report on August 26 (4 September) in which it examined the activities of 157 digital currency exchanges and concluded that most likely about 51% of the daily trading volume reported for Bitcoin on these platforms. Transactions were fake.
In fact, Forbes says that perhaps 51 percent of all reported trading volume on exchanges is fake or uneconomic. While several sources have reported the volume of Bitcoin daily transactions on June 14 (June 24) around 262 billion dollars, Forbes estimate is 51% less than the reported volume and was around 128 billion dollars.
The US Commodity Futures Trading Commission (CFTC) defines a wash trade as:
Carrying out or claiming to carry out transactions with the aim of pretending that real buying and selling has been done, without incurring the risk or changing the trading position of the trader in the market.
According to Forbes, exchanges such as Binance, Bybit, and MEXC Global are some of the biggest examples involved in fake trading volumes.
The volume of transactions of these exchanges is very high; However, there is no monitoring to verify their trading statistics. According to this report, the total volume of transactions of exchanges that are less under legal supervision on June 14 (June 24) was about 89 billion dollars, while these exchanges themselves claim that the volume of their transactions on this day reached 217 billion dollars.
Many people in Western countries, especially the United States, assume that most Bitcoin transactions are made against the US dollar, Euro or even the pound; But this is not true. In fact, a significant amount of Bitcoin trading is done with fiat currency pairs such as the Japanese Yen and South Korean Won, as well as major stablecoins such as Binance USD (BUSD) and other dollar-denominated stablecoins.
The findings of a report published by the investment company Bitwise in March 2019 (March 2019) show that 95% of the volume of Bitcoin transactions announced on the CoinMarketCap website was incorrect or uneconomic.
Forbes claims to have used quantitative and qualitative evaluations to conduct its study on manipulation of the volume of announced transactions of exchanges. Unlike other reviews where researchers look solely at transaction data (which may be misleading), Forbes questioned the statistics reported by these exchanges by looking at at least five datasets.