December’s Exchange Volumes Report by the Blockchain Transparency Institute (BTI) reveals that from CoinMarketCap’s top 25 Bitcoin (BTC) trading pairs, most have actual volumes of less than 1% of what is being reported by the exchanges.
Known as wash trading, exchanges and traders use bots and automated tools to wash trade in order to inflate the volume of activity on a pair. In effect it makes an exchange look far busier and full of active participants in the marketplace, when in reality it may be only 1% of what is showing on the order books.
Based on this data over 80% of the CMC top 25 BTC pairs volume is wash traded. These exchanges continue to use these strategies as a business model to steal money from aspiring token projects.– BTI Report
The report states that exchanges drive artificial volume in order to attract digital assets to pay for listing. They promote listing as beneficial to a token or cryptocurrency, and use wash trading to make it appear like the market is flooded with activity.
Are you a user of any of these exchanges? How do you feel about exchanges wash trading? Let us know in the comments below.