50 exchanges exchange 95% of their trading volumes


Blockchain Transparency Institute (BTI) has just shared its December 2018 report, in which the group of researchers shed light on the reported volume of Bitcoin trading pairs published by Coinmarketcap in the last month.

The research claimed to have found clear evidence of the trade in washes and various bot strategies used internally by notorious exchanges to inflate trade volumes.


In its report published on December 13, BTI would develop a new system of combined metrics aimed at providing better transparency for the entire crypt ecosystem.

The BTI methodology depends on the compilation of the data on the liquidity of the order backlog and on the unique daily counts of the visitors to provide a more accurate estimate of the true daily volume.

The research was also conducted on traffic data websites, taking into account data on the mobile app and the APIs that were supposedly aggregated from exchanges and from multiple mobile data analysis websites.

BTI reiterated that their methodology continues to evolve since their first report published in August 2018 and that their team is still working to provide the most accurate and transparent ranking of trades and a true volume assessment tool.

Wash trading tests

This monthly report has paid particular attention to the Bitcoin trading pairs on exchanges with clear evidence of washing trading.

The report reveals:

"In this period, [Last three months, Ed. Note] we spent countless hours watching orders, analyzing volume data and talking to market makers, high-frequency merchants and commercial surveillance consultants. We have collected a huge amount of data and now we feel confident about starting to release these figures. "

The research team also claimed to have discovered four distinct bot strategies used by exchanges to inflate their trading volumes.

Some of which were presumably set to alter the exchange volumes of different pairs depending on the time of day, and the current hype around a specific digital resource.

BTI has stated that it is able to decode some of these bot settings without providing specific details in order to "stay ahead"Of those who have called bad actors.

First 25 BTC pairs on Coinmarketcap

One of the most obvious statements presented in the report is that in determining the true trading volume of Bitcoin trading pairs reported by some exchanges to coinmarketcap, the 80% of the total volume of the first 25 exchanges in which the trading was carried out, has been traded and adjusted.

"Most of these pairs of actual volume is less than 1% of the volume reported on CMC.We only noticed 2 of the top 25 pairs that do not have to be grossly flushing their volume, Binance and Bitfinex, the report states. "

The actual 24-hour volume of Coinbene estimated by ITV was $ 2,736,060 for a reference date.

(BTI did not mention when exactly the trading occurred and did not respond to our request for the exact date at time of printing)

The actual trade volume estimated by ITV was about 1% of the $ 222,846,105 recorded by the exchange, which ranked it at the top of the Coinmarketcap list.

Similarly, Okex, which was ranked second on Coinmarketcap, inflated its trade volume by 922% to $ 182,301.294 where the estimated real volume did not exceed $ 19,763,245.

HitBTC and Huobi also report highly inflated and misleading volumes.

The BTI have estimated that their actual volumes are around 25% of what was claimed. The complete list of the 25 main exchanges was published by BTI.

Quote rates

Without providing much detail, BTI claimed to have received information from "many tokens in space"That on average, the aspiring projects have spent about $ 50,000 in 2018 in the form of quotation of commissions to trade.

BTI also updated an Exchange advisory list for suspected exchanges of cryptocurrency of washing trading. The report says:

"[…] with over 50 wash services exchanges over 95% of their volumes, this is a 500K scheme in the year, with some exchanges exceeding one million dollars this year only from the collection of these commissions […] Many of these exchanges exist exclusively to collect such commissions while their robots manage their exchanges. We also have data on the costs of listing fees for trades that do not use the washing robots. We have had reports on rates ranging from 2 BTC up to 75 BTC. "




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