Apparently, Bitcoin trading data on 157 exchanges did not match the figures they claimed.
According to a Forbes note dated August 26, Xavier Pax, from the digital asset division of the media outlet, said there was a mismatch between Bitcoin (BTC) trading data reported by crypto exchanges and the actual numbers. The Forbes contributor found that a group of small exchanges had roughly 95% lower BTC trading volumes than reported, while those operating “with little to no regulatory oversight”—including Binance Y bybit– they claimed to have more than double the volume analyzed: USD 217,000 million compared to USD 89,000 million.
“More than half of all reported trading volume is likely to be false or uneconomic,” Pax said. “Bitcoin daily global volume for the sector was $128 billion on June 14. That is 51% less than the $262 billion that would be obtained by summing up self-reported volume from multiple sources.”
Pax added:
“If reported trading volumes for Bitcoin, the most regulated and policed crypto asset worldwide, are unreliable, then metrics for even smaller assets should be taken with a grain of salt. At best, trading volume is one of the most measurable signs of investor interest, but it can be easily manipulated to convince newcomers that there is much more demand than actually exists.”
A new Forbes analysis of 157 crypto exchanges finds that 51% of the daily bitcoin trading volume being reported is likely bogus: by @eltrade https://t.co/Oy5JMV4pFj
— Forbes Crypto (@ForbesCrypto) August 26, 2022
Pax cited a 2019 report from Bitwise Asset Management, which stated that 95% of reported cryptocurrency trading volume on unregulated exchanges appeared to have been faked or the result of uneconomic wash trading. A February note from Chainalysis suggested that wash trading was becoming a point of concern among non-fungible token investors, but most trades using this technique were unprofitable.
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