68% Is The Share of Fake Volumes In CoinMarketCap
The analysis says that 68,6% of trading volumes displayed by CoinMarketCap are fake. This figure, however, is significantly lower than what Bitwise Asset Management announced in March (95%).
The discrepancy between the results in almost 30% of the authors of the new study is explained by the difference in methodology. So, FTX Global is sure that Bitwise used an too strict approach to data analysis, which is why a significant proportion of real trading volumes fell into the category of fake ones.
Analysis of Cryptocurrency Trading Volumes and Methodology
Although our methods do not exclude errors, we are sure that they give the most reliable idea of the true trading volumes of cryptocurrency,
In particular, the experts found out that some sites provided data on the volumes of foreign exchanges for their own, with a slight delay in time. Other platforms used more advanced techniques. For example, they introduced large fake volumes only against the background of many smaller orders, thus trying to hide the true state of affairs.
The main purpose of these tactics is to raise the platform higher in the CoinMarketCap rating, creating a false impression of its liquidity. It also sometimes allows for the ability to charge a higher listing fee.
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