Latest report by CER, a cryptocurrency exchange rating service claimed that the Bithumb exchange is wrongly providing its trading volume since summer 2018. Resource unveiled the following stat;
- September – the trading volume of Bihumb was valued up to $350million
- November 11 – Bihumb surged at $4.4 billion (jumped up to 12 times as much)
- December 19 – Bithumb valued at $1.4 billion
However, looking at coinmarketcap, Bithumb today on December 20, 2018, stands with the trading volume of $1,740,002,554 which the source claimed that‘it doesn’t appear on CMC’s “adjusted volume” ranking.
CER – Bithumb is Probably Involved in Wash Trading
Cryptocurrency exchange rating or CER asserted that the Korean based crypto platform, Bithumb is probably engaging in the ‘wash trading’ activity. Wash trading is a form of trading in which investors trade the same ‘securities or financial instruments’. It is a market manipulation activity, created to mislead the financial mechanism within the market.
Gleb Myrko, CER marketing lead told Forbes, executive;
“Judging from our multifaceted investigation on Bithumb charts we see the signs of trade volumes manipulations, specifically, wash trading,”. He kept on adding that “Having calculated Price-Volume Correlation we came to the conclusion that the trade volume performance is not linked to price fluctuation on the exchange.”
Looking closer on the matter, CER gave instances of two events that have happened in the past to prove Bithumb’s wash trading activities.
- It highlighted the wash trading by Bithumb can be seen during the month of September, in which the daily trade volume of BTC jumped to 10x.
- Yet another example pointed out is that ‘strange activity kept on happening in an early 11 Am hour every day that eventually delivered 95% of the daily total volume’. For instance, BTC transaction on early September 9,2018 was 7500 which was however 39% of the daily trades and 94% of the total day’s volume.
- Moreover, it also notes the increase in average transaction size between October 15 and November 11 which has inflated from 0.21 BTC to the 5.88 BTC. Along with Bithumb, CER also points other altcoins those are involving with similar activities – they added LTC, ETC, XMT, OMG, ZEC, BTG and WTC.
Bithumb’s stake on Allegations
As a response to this claim, Bihumb sent out an email to Forbes, stating “Bithumb is doing nothing to inflate trading volume”. It denies the allegation made by CER and urged how Bithumb is moving forward to promote its services just like other trading platforms.
At this point, CER’s Myrko claims that;
“Bithumb has mastered a multi-factored approach to conceal its foul play,” Continuing that “As far as we are able to judge the manipulations were fulfilled via matching opposite orders with the same price or by simply drawing transactions out of thin air, so-called ‘painting the tape.'”
Coingape is looking closer to the matter to provide the details on this matter and the stake of Bithumb cryptocurrency exchange. Stay connected to know more.
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com