The CoinMarketCap data is suspected to be falsified. Behind the inflated trading volume is the exchange market maker management team with an average monthly average of 60,000 RMB
CoinMarketCap has been questioned again for falsifying exchange volume data?
In August of this year, some cryptocurrency enthusiasts questioned CoinMarketCap data fraud to guide users.
On December 13, the Blockchain Transparency Institute (hereinafter referred to as BTI) released a report stating that the total trading volume of the top 25 exchanges on CoinMarketCap recently was $2.5 billion, while the actual trading volume Only $324 million, 87% less than the figure published on CoinMarketCap.
Coinbase, the leading exchange in the United States, did not even enter the top 25 of CoinMarketCap due to the rampant wash volume of other exchanges. At press time, Coinbase ranks 34th on CoinMarketCap by trading volume.
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Fraudulent trading volume, luring investors to take orders at high prices
BTI said that after three months of research and analysis, they found 4 commonly used machine brushing methods in exchanges, some of which robots set different trading pairs according to different time periods of the day, and the settings will be based on the current Traffic trends or changes in hype for a given coin during that time period.
BTI recalculated the real trading volume of the top 25 BTC trading pairs on CoinMarketCap. The real trading volume of most trading pairs is less than 1% of the trading volume they reported to CoinMarketCap. Among the top 25 exchanges, only two The major (Binance and Bitfinex) exchanges did not fake volume.
In a previous report, BTI found that the top 30 currencies on OKEx were all trading volume, and OKEx seems to have benefited a lot from the recommended traffic of CoinMarketCap.
In early November of this year, a foreign author named Sylvian published an article on Medium. He concluded through public data analysis that he believes that OKEX, the world's largest trading volume, has fraudulent trading volume, "93% of The transaction amount is a false transaction".
In addition to OKEX, the article also pointed out through data analysis that "China's virtual currency exchanges" Huobi, Binance, Lbank, etc. have fraudulent trading volumes, and the number of fake trading volumes accounts for 70%~90%.
Among so many fake exchanges, the most serious one is OKEX. It currently ranks fourth on CoinMarketCap and LiveCoinWatch with a combined turnover of $400 billion.
Judging from the observation of the top 25 currencies by Huobi’s trading volume, there are also brushing behaviors, but the degree of brushing is not as serious as OKEx. The coins with the highest brushing volume on Bithumb are Monero, Dash, Bitcoin Gold and ZCash , and this data continues to change every month.
According to a survey by sylvian, as much as 75% of the trading volume of Litecoin and Bitcoin is completed on one or more of the above-mentioned suspected fraudulent exchanges, and the trading volume of OKEX alone accounts for the total volume of these two cryptocurrencies. More than 30% of.
By displaying these artificially high trading volumes, these cryptocurrencies appear more attractive to traders as they appear to be gaining more attention than they actually do.
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A monthly average market value management fee of 60,000 RMB for high trading volume
Behind the falsification of exchange trading volume is the huge market value management team making the market.
An anonymous market value management team told the Odaily reporter that according to the usual needs of the currency circle, a complete currency value management solution includes at least the following three parts:
1. Provide beautiful trading volume.
2. Provide sufficient market depth to undertake large capital operations in the market, that is, market makers.
3. Keep the currency price relatively stable.
The first one is to provide beautiful trading volume, which is the trading volume fraud mentioned above. This is the simplest step in the exchange market value management. It is enough to write a robot to automatically swipe orders. It is best to use a program to operate this. The traces of manual operation are too obvious, and it is difficult to achieve a smooth and stable transaction volume.
The second item requires a certain amount of funds to receive orders. If it is a currency that is listed on other exchanges at the same time, it is relatively easy to do. You can anchor the price of another exchange for real-time hedging. In principle, you will bear a small amount of risk.
If it is a currency that is only listed on one exchange, the market maker will also take greater risks. At this time, it is necessary to have a general understanding of the circulating chips in the market. The amount of capital required will also be large.
Article 3. To maintain the stability of the currency price, the main response is the risk of a bear market decline, which requires a large amount of funds to take over the order. At the same time, it requires simultaneous implementation of media publicity and community guidance.
Of the above three services, the first two are the easiest. It is completely possible to replace manual operations with programs.
The third service requires close cooperation with the project party, and familiarity with the distribution of chips in the market, as well as the actions of the project party, the release rules of coins, etc., and the insider needs to be familiar with it. This aspect is somewhat different from the traditional stock market. resemblance.
The person who specializes in helping exchanges with market value management revealed that they use their own market-making robots to do automatic trading, order pending, transaction hedging, etc., and manual 24-hour auxiliary monitoring.
At present, it has helped four exchanges to successfully make markets, including BQEX, a digital asset exchange, and revealed that their current daily turnover for BQEX is about 30,000 BTC.
When asked about the market value management fee, the reporter from Odaily learned that their one-month service quotation is 60,000 RMB or the equivalent USDT, and joked that "in the case of BTC's continuous decline, the price of the currency can only be relatively stable." of USDT."
Moreover, the market-making profit income of the currency value management team is shared by both parties in proportion, the exchange party accounts for 70% of the profit income, and the currency value management team accounts for 30% of the profit income.
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Currency management market born of chaos
In the stock market, the so-called market value management refers to:
The company has established a long-term organizational mechanism to maximize the value of the company, create value for shareholders, and maintain a relatively dynamic balance between related parties by maintaining accurate and timely information exchange with the capital market. Within the scope of the company's ability, try to make the company's stock price serve the realization of the company's overall strategic goals.
Market value management is a strategic management behavior in which listed companies comprehensively use a variety of scientific and compliant value management methods and means based on the company's market value signals to maximize the company's value creation and value realization optimization. Among them, value creation is the basis of market value management, value management is the key to market value management, and value realization is the purpose of market value management. (From Baidu Encyclopedia)
For the Chinese stock market, which has a history of 30 years, a set of specific market value management standards has been formed, and a clear conclusion has been reached on the distinction between market value management and stock price manipulation.
As for the digital currency market, which is still in its infancy, there is currently no clear conclusion on the management standards of the currency market value. That's why there are so many bankers cutting leeks and the exchange liquidation incident.
At present, many people in China understand currency value management to be able to make orders, and there are also many industry troops who make orders in the market. According to an industry insider, the industry generally believes that programmatic transactions account for 80% of the transaction volume of matching trading platforms. Of the three largest bitcoin exchanges in China, OKCoin estimates that 60 percent of trades are executed by automated traders, while Huobi and Bitcoin China similarly put the figure at 80 percent.
From these data, it can be seen that, unlike stock market market value management, the status quo of currency market value management is relatively chaotic. Many people are superstitious about the power of funds and manipulators, which will have a negative impact on the value recognition of the currency value formed by the industry.
