ICO News

Majority of the Cryptocurrency Exchanges Have Stopped Misreporting Fake Trading Volumes Except Few – The Cryptocurrency Analytics

Liquidity is significant in cryptocurrency trading.  It is an essential factor that determines how easily the crypto assets can be traded.  The information about a particular token has a considerable role to play in contributing to its liquidity among several other factors. Yet another problem on hand is the issue of fake trading volumes. Some exchanges fake trading volumes to improve on the exposure for the exchanges.

CoinMarketCap has recently confirmed its strategic partnership with YahooFinance to add to the performance of their cryptocurrency section.  Getting new users is a challenge as the overall public interest in cryptocurrencies is not as good as it used to be in 2017. Without an active user base, it is not easy for cryptocurrency exchanges to attract traders to their product offerings and reputations.

While the cryptocurrency was originally born out of the rebellion versus banks, rules, and fees, it is slowly becoming the mainstream.  Cryptocurrency has been a long-time favorite of idealists and speculators.  Governments and corporations are slowly beginning to look towards the adoption of cryptocurrency.  Cryptocurrency is considered seriously.  Governments and mega corporations are taxing, regulating, and so-opting cryptocurrencies.

The IRS is taxing investors on the gains made from cryptocurrency. Giant corporations like Facebook are looking to come up with their own cryptocurrency.  Cryptocurrency ATMs are becoming commonplace.  Government-approved Bitcoin-focused futures trading platform is becoming commonplace. Countries like Venezuela are adopting national cryptocurrencies. JP Morgan is issuing its stable coins for international banking.  More than 48,000 businesses are accepting cryptocurrency as a payment system.

Even small-cap tokens like TCAT tokens are accounting for investor interest in cryptocurrency. While all of these are happening as an effect of the happenings in the cryptocurrency market, measures are being taken by industry pioneers to filter out over reported trading volumes to make the asset class more transparent.

Read More   Network Token (NTWK) Price Tops $0.0012 on Major Exchanges - Fairfield Current

Regulators are taking a closer look at cryptocurrency exchanges, and they are filtering out trading volumes to find out only true trading activities across exchanges eventually.

Chainalysis, in its recent report, stated: “While we did find examples of exchanges likely faking substantial trade volumes, most large exchanges appear to have ceased these deceptive practices in the last year.”

When fake volume reporting is eliminated, cryptocurrency will evolve to be a mature asset class where the trading ecosystem is worth the trust of investors.  Products like Bitcoin ETF will win the approval of regulators only when a trust system is created in the market, and the system becomes reliable. Some exchanges continue to misreport volumes, while a majority of the cryptocurrency exchanges have stopped misreporting volumes.


Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.