Report: 80% of CoinMarketCap's top 25 bitcoin pair volumes are wash traded
December 17, 2018, 5:18PM EST
1 min read
Blockchain Transparency Institute, a team of blockchain data researchers, released a report analyzing cryptocurrency exchange data collected from CoinMarketCap's top 25 bitcoin trading pairs. Specifically, they took a deep dive into trading pairs on exchanges which show evidence of wash trading. Wash trading is a practice — illegal in some jurisdictions — in which traders simultaneous buy and sell their own orders, creating the appearance of higher trading volumes for an asset. Here are the findings from the Blockchain Transparency Institute's report:
There are at least four different bot strategies used to inflate exchange volume numbers
Most trading pair volume is under 1% of their reported volume on CoinMarketCap
Only 2 out of the top 25 pairs do not appear to be "grossly wash" trading their volume. They are Binance and Bitfinex
All 30 of OKEx's top traded tokens appear to be engaged in wash trading
Over 80% of the CoinMarketCap top 25 bitcoin pairs volume is wash traded
The average blockchain project spent over $50,000 this year on exchange listing fees
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