Blow To Bitcoin As Researchers Warn Of ‘Genuine’ Exchange Problem
Story by: Billy Bambrough
Bitcoin and cryptocurrency exchanges, many of which have been the subject of scandals over recent years, have struggled to win user and regulatory trust, with trade volume and price manipulation an ongoing concern of traders and regulators.
The bitcoin price, which is down some 80% from its all-time highs of near $20,000, has repeatedly faced accusations of manipulation, with a long-running bear market causing a bitter crypto winter to grip the sector over the last year.
Now, a report is warning that much of the bitcoin and cryptocurrency trading volume on some of the world’s largest exchanges may not be “genuine,” with researchers from startup the Tie finding almost 90% was questionable.
Bitcoin and cryptocurrency exchanges have faced a number of scandals over their 10-year existence.GETTY
Bitcoin and cryptocurrency data researchers, after analyzing internet traffic on the top 100 crypto exchange websites, found that 75% of the reported trading volumes on exchanges were more than double expected. Meanwhile, almost 90% of the exchange volume could be false.
To carry out the research the Tie compared the near $600 weighted average trading volume per user visit at leading crypto exchanges, including Binance, Kraken, Coinbase Pro, and Gemini, and applied it to other, smaller exchanges.
Original story: http://tinyurl.com/yya2kzjb
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