OKEx Official Denies BTI’s Allegations of Wash Trading

Blockchain Transparency Institute (BTI) recently released its Market Surveillance Report for the third of 2019. The report highlights the percentage of wash trading happening on major exchanges including Binance, Gemini, Bitflyer and OKEx. According to the report, OKEx is among exchanges with over 99.7% of its volume made up by wash trading. OKEx’s Head of Operations Andy Cheung has denied the allegations and condemned the report on Twitter.

BTI’s Surveillance Report is False Claims, Andy Cheung

Andy Cheung took to Twitter today and claimed that OKEx was not involved in any wash trading and that the BTI report was false.

He further said that the methodology used by BTI was questionable as the company had not revealed how it had arrived at those figures on wash trading. He even mocked BTI saying that the institute did not seem very transparent on their website.

On calculating trading volume, Cheung elaborated that the unique market structure of cryptocurrencies called for a comprehensive methodology to yield accurate results, implying that BTI’s methodology was insufficient. He also explained that OKEx was different from retail-oriented exchanges because its clientele included professional trading firms, proprietary traders, and high-frequency trading firms.

Community Supports Cheung

Crypto Twitter seems to be in agreement with Cheung, criticising BTI for creating FUD.

Crypto influencer Mia Tam lashed out against BTI claiming that they were “paid fudders”.

andy
Source: Twitter

Other members of the crypto Twitter also stood by OKEx, refusing to buy BTI’s allegations.

Source: Twitter

OKEx isn’t the only exchange that has questioned BTI’s methodology. Tai Zen, CEO of Cryptocurrency.The market also asked if BTI had access to exchange’s order books and matching engines. BTI responded by saying that it had over a year of data from exchanges. However, Zen wasn’t convinced and said that one couldn’t find out about trades that are washed simply by looking at exchanges’ public order books, price charts & time and sales.

Binance, Gemini and Bitflyer Among the Cleanest Exchanges

According to BTI’s report, Binance, Kraken, Coinbase, Upbit, Gemini and Bitflyer are among the cleanest exchanges with a very low volume of wash trading. According to the BTI report, Binance now has under 10% wash trading after nearly 20% wash trading in the first few months of 2019. Gemini has also improved significantly, lowering the percentage of wash trading from around 15% to lesser than 10% now.

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