Fake Trading Share to Reach 68%, - FTX Global

This figure, however, is significantly lower than what Bitwise's report and the discrepancy is explained by the difference in methodology
04 July 2019   1499

The exchange of derivatives FTX Global and Alameda Research conducted a study that estimated the volumes of fictitious transactions (wash trades), presumably prevailing in many cryptocurrency exchanges.

The report says that 68.6% of trading volumes displayed by CoinMarketCap are fake. This figure, however, is significantly lower than what Bitwise Asset Management announced in March.

The discrepancy between the results in almost 30% of the authors of the new study is explained by the difference in methodology. So, FTX Global is sure that Bitwise used an too strict approach to data analysis, which is why a significant proportion of real trading volumes fell into the category of fake ones.

While our methods are not foolproof, we believe they paint the most accurate picture of the true nature of cryptocurrency trading volume that anyone has made publicly available as of yet.
 

FTX Global Team

The Alameda methodology involves verifying the authenticity of data on trading volumes on various exchanges based on six different parameters, including manual verification of information and comparison of order books.

FTX Global Website
FTX Global Website

In particular, the experts found out that some sites provided data on the volumes of foreign exchanges for their own, with a slight delay in time. Other platforms used more advanced techniques - for example, they introduced large fake volumes only against the background of many smaller orders, thus trying to hide the true state of affairs.

The main purpose of these tactics is to raise the platform higher in the CoinMarketCap rating, creating a false impression of its liquidity. It also sometimes allows for the ability to charge a higher listing fee.

Binance Futures to Report on Month's Success

For example, On October, the 24h trading volumed reached 69 158 BTC (more than $500k)
16 October 2019   92

The crypto-derivative platform Binance Futures reported on the progress achieved in a month.

The blog of the largest Bitcoin exchange Binance says that during the first day the volume of trading on its unit was 19 253 BTC. Just 10 days later, this figure grew almost 4 times and reached a record 74,647 BTC. Thus, the turnover on Binance Futures quickly exceeded the trading volume in the BTC / USDT spot pair on Binance.com.

On October 8, Binance Futures became the fourth largest crypto derivative platform.

As of October 14, the daily turnover of this platform amounted to 69,158 BTC (> $ 500 million), which is comparable to the real trading volume on the 10 largest exchanges according to Bitwise. At the same time, the total daily trading volume on the regulated exchanges CME and Bakkt now amounts to only $ 84 million.

Many futures traders are also using our industry-leading spot market for hedging or conducting arbitrage trades. We have seen increased activities from these traders transferring in and out from spot to futures during volatile periods. The liquid and ease to use spot market, as well as the simple process to transfer capital between spot and futures, provides our customers with the most efficient manner to trade both markets. 
 

Binance Team

Also, according to them, the derivative exchange's matching engine is capable of processing 100 thousand orders per second.