Research Claims Many Crypto Exchanges Are Manipulating The Volumes CRYPTOCURRENCY

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Cryptocurrency exchanges are the middlemen in
ensuring digital token providers, holders and traders
are happy. These exchanges decide which tokens to
add in their platform, and which to avoid. They even
have the power to boost the volume of a specific
token as opposed to another.
Cryptocurrency enthusiasts seem to shake their heads
in disbelief about the malpractices of Cryptocurrency
exchanges. However, recent research by Blockchain
Transparency Institute appears to prove that these
exchanges take place in astonishing types of
malpractices.
According to the research, the average price to list a
token on an exchange is typically over $50,000. The
contractual agreement between the ICO and
exchanges is not the primary problem. Instead, the
volumes being manipulated to motivate and
encourage ICOs to choose an exchange over another
is what seems to be driving a suspicious trend of
Exchanges taking advantage of the Cryptocurrency
revolution.
There are 4 different bot strategies implemented to
inflate exchange volume numbers. Settings are
changed based on current volume trends or the hype
surrounding a particular token for that time.
The research lists that out of the top 25 exchanges on
CoinMarketCap; only two are honouring the system.
The remaining are involved in wash trading. Wash
trading is defined as the creation of fake volume for
the purpose of appearing more beneficial than it’s
competitors. Over 70% of their trading volume is wash
traded according to figures, with 12 out of the 25
exchanges wash trading a whopping 99% of their
volume.

The total trading volume among the top 25
CoinMarketCap exchanges is seen to be $2.5 billion
per day. However, in actual terms, it is only $324
million. That is 87% less than the apparent claim.

Source: https://zerocrypted.com/