According to the new study submitted by Bitwise Asset Management to the SEC, 95% of the volume of BTC shown does not reflect the truth. According to Bitwise, only 10 markets have a real volume, but this is not a bad news for the Bitcoin market.
95% of Bitcoin Volume Not Real
The claims of fictitious trade and fake volume is not a new event. Groups such as the Blockchain Transparency Institute publishes detailed reviews. But the majority now believe that 95% of the volume is fake. The reason for the fact that the exchanges are different from the volume, is to increase the listing prices.
According to the study, only 10 of the stock exchanges that report daily volume of more than $ 1 million to CoinMarketCap are honest. These are Binance, Bitfinex, Kraken, Bitstamp, Coinbase, BitFlyer, Gemini, itBit, Bittrex, and Poloniex. Korean stock exchanges and Cex.io, which passed the test but have a volume below 1 Million dollars, were not included in the report.
Most stock doesn't even work
The report discloses ways to easily distinguish a real exchange from a counterfeit. When you put them side by side, the falsehoods of some exchanges appear as days.
The purchase sales distribution on a real stock market will be arbitrary, with high and low amounts as well as plenty of round figures. Volumes will fluctuate over time, occasionally busy at times; The price difference between buying and selling is usually only a few cents.
On the other hand, in the suspicious stock exchanges, trade and buying are generally realized. This is not very common in real trade.
In the case of suspicious exchanges, the sales price difference is large despite the huge volume. The volume remains partly the same in this process, even if it changes daily or hourly decreases.
Smaller markets are more suitable for Bitcoin ETFs
Bitwise promised his future with the good news. But in reality this is just like good news for themselves. Because this research was originally presented to the SEC as a support for Bitwise's Bitcoin ETF application. So the good news is that 95% of the volume is not real:
”The real market of Bitcoin is much smaller, more organized and much more controlled than it usually is.“
The bad thing is that these risky exchanges know how to avoid detection with their boots.
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The post Stunning Report: 95 percent of the Bitcoin Volume of Stock Exchanges appeared Fake first on Kriptokoin.com.