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Crypto Drops, Report Questions Trading Volumes

Published 03/20/2019, 12:17 AM
Updated 03/20/2019, 12:17 AM
© Reuters.

© Reuters.

Investing.com - Bitcoin and other top cryptocurrencies were slightly lower on Wednesday morning in Asia, while a new report raised questions about the trading volumes reported on the world’s top crypto exchanges.

Bitcoin dropped 0.11% to $3,994.5 by 11:20 PM ET (03:20 AM GMT). Like the day before, the cryptocurrency hovered close to the $4,000 level but did not manage to break through the psychological mark. It has been below $4,000 for almost a month.

Other coins did not make significant price movements either. Ethereum slid 0.53% to $137.75, XRP was down 0.39% to $0.31306 and Litecoin dropped 0.91% to $59.101.

On Tuesday, Bloomberg cited a report from a startup called The Tie which claimed the world’s major crypto exchanges might be reporting incorrect trading volumes. The report concluded that 75% of exchanges reported trading volumes that were more than double what would be reasonably expected from looking into internet traffic on the websites of the top 100 crypto exchanges.

The startup studied weighted average trading volumes per user visit at major crypto exchanges such as Binance and Coinbase Pro and applied the same metric to other exchanges, only to find that 59% of the exchanges reported trading volume that was 10 times higher than would be expected.

Bloomberg said traders and regulators have been concerned about crypto exchanges manipulating trading volumes to make digital coins appear to have greater demand.

Despite the news questioning the credibility and reliability of cryptocurrencies, Switzerland’s largest online retailer Digitec GalaxusAG decided to adopt cryptocurrencies. Its Swiss customers can now check out using crypto payments, which supports Bitcoin, Bitcoin Cash, Ethereum, Ripple, Litecoin and so on. But to be eligible for crypto payments, customers have to spend at least 200 Swiss Francs.

Latest comments

It's known that there are exchanges definitely faking their volume. Coinscious just shared a technical report analyzing volumes, price and correlations between the exchanges to give insight on which exchanges are the most fair. Interesting read: https://coinscious.io/coinscious-lab/exchange-report-2019-03-18/
same thing happens on the NYSE.....
How ironic the market manipulators are concerned with market manipulation lol. They try way too hard!
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