A new study of 157 crypto exchanges by Forbes has revealed that the Bitcoin transaction volume reported by these exchanges is often lower than what they report. The report cited the June 14 instance of figures. He stated that Bitcoin transaction volume that day was $128 billion. A far cry from the $262 billion reported by these exchanges. Therefore, it indicates that 51% of all bitcoin transactions reported are false. The Forbes report also claims that Tether plays a huge role in Bitcoin spot trading. Stablecoins are responsible for the majority of Bitcoin transactions. However, the US dollar, South Korean won, and Japanese yen are among the major fiat currencies involved in a large percentage of trades. According to Forbes, more than 90% of Bitcoin’s liquidity is against the Tether USDT or fiat USD. However, there is significant demand for non-dollar currencies from South Korea, Japan, Turkey, and other parts of Europe. The study also revealed that Bitcoin perpetual trading, spot trading, and futures trading in that order make up a large portion of Bitcoin trades.
27% of all Bitcoin transactions occur on Binance
The report classified exchanges into three groups based on the difference between their actual volume and the volume they reported. Based on trading volume, the study found that Binance, FTX Y OKX are the three major exchanges. They are then followed by Huobi Global, Crypto.Com, Bybit, Bitget, Bing, Mexc Global, and KuCoin in no particular order. The report further notes that FTX, OCX, and Crypto.Com are exchanges with up to 25% difference in their actual and reported Bitcoin trading volume. The study classified these exchanges in group 1. The second group contains exchanges whose volume difference is between 26 and 79%. The latter group contains exchanges whose reported Bitcoin transaction volumes are significantly higher than the actual trading volume. The report cited the example of BitCoke. Bitcoke’s Bitcoin trading volume was $14 billion. The exchange only has 10,000 monthly visitors, and more than 50% of them are Argentines.
Exchanges and false figures
According to the report, exchanges operating in regions with little or no regulatory oversight are guilty of reporting false transaction data. MEXC Global, Binance, and ByBit are among the notable exchanges mentioned in the report as being guilty of this accusation. The report stated that these three exchanges declared their Bitcoin trading volume to be $217 billion when it was actually $89 billion. The Forbes report explained that there are traders who engage in wash trading. Therefore, they can create a false impression of the increasing demand and popularity of specific tokens. The report added that the benefits of these false reporting exchanges are that they can claim to have higher trading volume and encourage more legal transactions on their platforms. None of the exchanges accused of false trading volume reporting have yet to deny the allegation.
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