Trader Silvian Reibs conducted a study of a number of crypto-exchanges and found that some of them falsify trading volumes. At the same time OKEx from OKCoin, top one platform in terms of trading volume, fabricates up to 93% of the indicators, he says.
In the course of the study, Reibs came to the conclusion that daily trading volumes for a total of $ 3 billion do not exist. The trader’s experiment was to assess how hard the various sites absorb the sale of a number of digital currencies in the amount of $ 50,000, and how much such a sell order could crash the original price. The latter figure he called “slippage”.
Reibs explained that if a particular trading pair demonstrates huge volumes, exchanges compete among themselves in order to attract as many buyers and sellers as possible. To achieve positive results in this context, he believes, it is possible only at the expense of reducing spreads.
Nevertheless, this theory was not justified on the cryptocurrency market, because the price differences between the exchanges were so huge that it could not be attributed to different models of the behavior of traders. The only reasonable explanation, in his opinion, is the fabrication of up to 95% of the indicators.
The trader decided to compare the data of such exchanges as Bitfinex, GDAX, Poloniex, Bistamp, Gemini, Kraken and OKEx. Evaluation of slip when establishing a $ 20,000 sell order showed that the OKEx results are radically different.
Thus, it is likely that 93.6% of the trading volumes of OKEx are deliberately fabricated. In addition, even if you remove the trading pair BTC / USD from the list, which really accounts for a large volume of trades, the level of tampering will drop to just 92.9%.
The second “record” is other Chinese stock exchange – Huobi. A similar experiment demonstrated that on average 81.8% of the trades on the site are fabricated.