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Token teams are paying for inflated volumes, but this tech company is helping traders spot them

by Frank Chaparro

October 17, 2018, 4:45PM EDT  ·  3 min read

Quick Take

  • FRST, a Chicago-based blockchain data provider, has raised $3.4 million
  • It provides technology to help trading firms distinguish between real volumes and inflated volumes
  • In crypto, firms sell services to make certain coins or exchanges appear more liquid

by Frank Chaparro

October 17, 2018, 4:45PM EDT  ·  3 min read

In crypto, there are three kinds of lies: lies, damned lies, and market data. 

Cryptocurrency markets are notoriously untrustworthy. Popular data aggregators, which paint a picture of the market for traders, notably ignore anomalies, such as wash-trading and pay-for-play arrangements between small cap coins and digital currency exchanges. 

Wash trading, the creation of artificial trading activity, is illegal in some jurisdictions, including the U.S.