Cryptocurrency
Chinese watchdog says crypto exchanges fake trading volumes
As reported by The Block, “The National Internet Finance Association of China (NIFA), a self-regulatory organization set up by the People’s Bank of China, has said that overseas crypto exchanges fake trading volumes. “According to its own analysis published Thursday, NIFA said foreign-based crypto exchanges use ‘robot programs to brush and tamper with data to […]
As reported by The Block, “The National Internet Finance Association of China (NIFA), a self-regulatory organization set up by the People’s Bank of China, has said that overseas crypto exchanges fake trading volumes.
“According to its own analysis published Thursday, NIFA said foreign-based crypto exchanges use ‘robot programs to brush and tamper with data to create the illusion of ‘prosperity’ in the virtual currency trading market.’
“’In our sampling analysis based on trading data from some of the exchanges, the daily trading turnover rate for more than 40 coins is over 100%, while more than 70 coins’ rate exceeds 50%. Despite the relatively low price and small market value, there have been massive trading volumes,’ said NIFA.
“Crypto market manipulation has been a longstanding concern. Last year, Bitwise said roughly 95% of reported trading volume in bitcoin is fake. The Block conducted its own research on the subject at the time and found that about 86% of reported crypto trading volume is likely fake…”