Survey: 92% of the volume of transactions on cryptocurrency exchanges are fake

The Blockchain Transparency Institute (Blockchain Transparency Institute) released a report analyzing the situation with the cryptocurrency trade from the beginning of the current year to April.

As the authors of the study admit, they wondered what the “fake percentage” of the volume of cryptocurrency transactions was after the two Bitwise reports were issued. They say that, firstly, only 5% of world trade in cryptocurrencies exists in reality, and secondly, this does not affect the overall dynamics of the market.

The Blockchain Transparency Institute said that they created an algorithm for calculating "non-existent or meaningless trading volumes." According to their data, of the 25 largest in terms of turnover of cryptobirth , which are monitored by the CoinMarketCap aggregator, 17 organizations have a real turnover of less than 1% of the declared. From a sample of 50 cryptobirges, a similar situation (less than 0.5%) in 35 cryptobirds.

As a result, the researchers draw conclusions :

“On average, if you take the entire cryptocurrency market, the fake level on a daily basis is 88 to 92%, and if you consider only Bitcoin , the level of fictional trade for this cryptocurrency is 92%. In the top 40 cryptobirth in terms of global turnover, the real volume of Bitcoin trade is only a third of what is stated. ”

Analysts have come to the conclusion that there are a number of measures that individual crypto-stock exchange resorts to in order to hide the real small numbers of cryptocurrency trading , including “buying the number of subscribers and likes on social networks, creating non-existent orders for transactions”. The Blockchain Transparency Institute is confident that such activity is “the whole industry”, which is engaged in deceiving investors.

Researchers believe that all of this is interesting to some cryptobirds, since against the background of supposedly large volumes of transactions, they can charge a higher price tag for listing cryptocurrencies on their sites.

Publication date 11.06.2019
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