The issue of fake data in the cryptocurrency space has been prevalent for a long time now and many proponents and luminaries in the space are trying hard to combat it. Bitcoin [BTC], the largest cryptocurrency in the space, has been at the center of many controversies involving fake trading volumes and exchanges manipulating the trade counts.
The latest news related to such events was pertaining to Binance’s Chief Executive Officer [CEO] Changpeng Zhao, who commented on Binance’s position at number 8 on the list of cryptocurrency exchanges, according to CoinMarketCap. He tweeted:
“This is getting a little out of hand. The exchanges above fail to realize:
CREDIBILITY is the most important asset for any exchange!
If an exchange fakes their volumes, would you trust them with your funds?”
Zhao, more popularly known as CZ in the cryptocurrency industry, also took a sly dig at the wrongdoers in the industry by stating that the “secret” for the health of the industry depends on the exchanges not hurting themselves.
Many users also commented on CZ’s post, with the CEO agreeing with Alen Salamun, a cryptocurrency enthusiast’s, tweet. Salamun had stated:
“People still don’t know you can fake any email address simply by changing the From: field. So they have absolutely no clue you can easily fake exchange volumes by 0 fee inside exchange trading….”
Many people in the space have also been appalled by Binance’s number 8 position on the charts, with some claiming that the drop is due to the “epidemic of wash trading occurring to inflate volume”.
CZ’s disappointment and criticism comes in the wake of reports claiming that 95% of reported Bitcoin trading volume was fake. The report, dated March 20, was created by Bitwise Asset management who informed the US Securities and Exchanges Commission [SEC] of the apparent manipulation of figures in the cryptoverse. The report stated:
“Despite its widespread use, the CoinMarketCap.com data is wrong. It includes a large amount of fake and/or non-economic trading volume, thereby giving a fundamentally mistaken impression of the true size and nature of the bitcoin market.”
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