CER analytical service accused the South Korean cryptobirge Bithumb of falsifying trading volumes. However, representatives of the platform deny these accusations, Forbes reports.
Judging from our multifaceted investigation on Bithumb charts we see the signs of trade volumes manipulations, specifically, wash trading. Having calculated Price-Volume Correlation we came to conclusion that the trade volume performance is not linked to price fluctuation on the exchange.
Marketing lead, CER
In September, Bithumb ranked first in the CoinMarketCap ranking in terms of trading volume. Then the average daily turnover of the South Korean exchange was $ 350 million. On November 11, Bithumb users made deals in the amount of $ 4.4 billion, which is 12 times more than the September figures. At the moment, according to CoinMarketCap, the average daily trading volume on the exchange is $ 2.5 billion.
CER specialists studied the data of the CoinMarketCap resource and came to the conclusion that Bithumb creates artificial activity on the platform, thus overstituting the trading volumes. CER also states that the dynamics of trading volumes are in no way connected with price fluctuations on the exchange.
Researchers also found suspicious activity on the stock exchange in the first minutes of the start of the working day. Transactions made at this time accounted for 95% of the total daily trading volume.
In turn, the Bithumb team stated that all these accusations are baseless.
Bithumb is doing nothing to inflate trading volume. Bithumb is not selling mining-based coin. Bithumb is trying to get more customers by providing various promotions just like any other company in the world as a normal business.
CER experts have promised to publish a full study to prove Bithumb’s fraudulent actions.
Note that in August, analysts at the Blockchain Transparency Institute announced that cryptocurrency exchanges overstate trading volumes by $ 6 billion daily.