Fake trading volumes is a big problem in the current crypto space. Bitwise, an index fund provider, informed that 95% of bitcoin exchange trading volume listed in CoinMarketCap.com is fake. So if the site reports around 11.000.000.000 USD trading volume, the real actual number is only 270.000.000 USD.
The website CoinMarketCap.com is one of the most visited websites in the world and the most visited among the crypto community. So the impact of its data is quite high. For many exchanges is Coinmarketcap website a great referral source, it gives them a lot of traffic.
There are many unregulated exchanges that fake their number to attract more traders and get higher rankings. The other reason why exchanges do that is listing fees for altcoins. Exchanges are a very profitable business, and they earn money from trade fees and listing fees.
CoinMarketCap.com wants to make some changes so the providing numbers will be more accurate. The answered to Cointelegraph’s question and announced that they would implement data such as:
- Liquidity measures
- Cold/Hot wallet balances
- Traffic data
The TIE provided the spreadsheet with the report Exchange Real Trading Volume Investigation.
The more reports like this the better.