- Exchanges raise their own rating by inflating trading volumes
- OKEX is the leader in the volume of large trades
Only 13 crypto exchanges show real sales volumes
Exchanges artificially inflate trading volumes
Even Popular Exchanges Failed The Coin Metrics Test
Trading volumes on market cryptocurrencies increase
New analytical tool from company Coin Metrics is capable of determining real trading volumes on cryptocurrency exchanges. According to the latest research, Total 13 exchanges in the world show the real volume of sales and purchases of crypto coins.
Exchanges raise their own rating by inflating trading volumes
Coin Metrics has developed a new analytical platform that allows you to track the real volume of transactions on a specific cryptocurrency exchange. It has long been known that some of the trading platforms, especially those that trade low-liquid altcoins, deliberately overestimate trading volumes to increase their own rating. New the tool allows you to track the dynamics of trades, as well as identify fake transactions.
“Industry full technical information, which can be difficult to understand and sometimes misleading. We are working to create a more transparent environment for those who work in it, and more safe, more reliable source for those hoping to find out more“- said John Jenty, data scientist at Coin Metrics.
The platform collects data from exchanges such as Binance / Binance US, Bitbank, Bitfinex, bitFlyer, Bitstamp, Bittrex, CEX.IO, Coinbase, Gate.io, Gemini, itBit, Kraken, and Poloniex.
To evaluate the performance of the tool, Coin Metrics analysts conducted their own audit of trades of crypto exchanges from the top 30.
The first metric shows whether the price flow of the exchange closely correlates with price stream from well established, well regulated exchanges, namely Bitstamp, Bittrex, Coinbase, Gemini, itBit and Kraken. Any an exchange that had an 80% correlation, or above, passed this test.
The second test involves cross-referencing the reported volume of the exchange with its daily web traffic. The rationale is Tom, what “numbers, inflating exchange volumes should have a higher volume-to-trader ratio than other exchanges “, according to Coin Metrics.
For the ultimate test, Coin Metrics checked a series of quality indicators, concerning the functions of the exchange, including availability historical data, regulatory status, KYC requirements and allowed deposits. Any exchange that has not scored at least 50 out of 89 for of this test, failed.
The results of the study were unexpected. Malta-based OKEx has failed all three categories and BiBox, ZB.com, LBank and HitBTC – two each.
OKEX is the leader in the volume of large trades
Cryptocurrency exchange OKEX, which failed Coin Metrics’ test miserably, recently reported record trading volumes. According to the submitted document, cryptocurrency OKEx exchange is an leader in quantity deals made by whales, and also record daily volume.
The sample included spot orders on 11 exchanges in the following pairs: BTC-USDT on Binance, BTC-USDT on Huobi, BTC-USD on Bitstamp, BTC-USD on Coinbase, BTC-USD on Bitfinex, BTC-USD on Kraken, BTC-JPY on Liquid, BTC-USDT on OKEx, BTC-JPY on Bitflyer, BTC-USD on LMAX Digital and BTC-USD on Gemini.
Now these results are questionable. Though last CoinGecko’s report shows that the level of cryptocurrency market capitalization is growing rapidly. According to CoinGecko, between January and March, the average commission was about $ 0.70, but in the May 11 halving, the average soared to $ 4.53, an increase of 6.5 times..
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