Bitcoin exchange OKEx recognized the problem of fake trading volumes on its platform

OKEX representatives agreed with the Bitwise report , recognizing that the exchange has a serious problem with artificially inflated trading volumes.

So, in a conversation with Crypto Briefing , OKEx Director for Financial Markets Lennix Lai noted that wash trading is common on this platform, creating the appearance of market activity and promoting artificially high trading volumes and prices.

“We recognize this ,” he stressed.

However, according to him, the exchange is taking measures to prevent such activity. On the question of whether the exchange itself carries out the so-called wash trades, Lai said: "No, of course."

He also noted that the eight-level OKEx commission structure plays a significant role in inflating trade volumes:

As you can see, traders have significant advantages, the total monthly trading volume of which is measured in hundreds and thousands of bitcoins. Such market participants can deliberately “pump up” trade with the help of bots, since this allows us to reach a new level and reduce transaction costs.

Lai noted that OKEx plans to increase the price tick on the platform, which makes it difficult to pump up volumes with bots, as well as tightening the KYC policy (“Know your customer”). The latter is designed to help identify accounts with suspicious activity and, if necessary, impose restrictions on them.

Earlier, the head of Binance, the largest stock exchange, said that reports on fake trading volumes were useful for the industry, as they motivate trading platforms to take measures to counteract market manipulation.

We also recall that the CoinMarketCap service confirmed that the information on fake trading volumes on cryptocurrency exchanges is true and announced its intention to introduce new metrics to combat inaccurate data.

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