Decoding Bitwise Report – Wash Trading and the “Real 10” Volumes: Expert Opinion

By Mati Greenspan
Published March 28, 2019 Updated April 9, 2019
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Decoding Bitwise Report – Wash Trading and the “Real 10” Volumes: Expert Opinion

By Mati Greenspan
Published March 28, 2019 Updated April 9, 2019

The following article is the rework of the thoughts put forward by Mati Greenspan, the Senior Market Analyst at eToro.

Key Highlights:

  • Crypto volumes and the ‘illegal’ technique of Wash Trading
  • Messari Crypto adds a new column called “Real 10.”
  • Argentina and the growing craze for Bitcoin

The bitwise report, fake exchange volumes, and aftermath

This week Bitwise released a report that shook the crypto industry from head to toe. The report spoke about how illusory trading volume numbers were among crypto exchanges outside the United States which meant around 95% of the Bitcoin trading volume for the top-81 exchanges on CoinMarketCap, the largest cryptocurrency market data aggregation site in the world is likely fake. The news spread at such pace that a large number of audiences just misunderstood it.

The findings of the report have definitely changed the perception of the crypto market in a profound way. To fully understand this, one needs to look past the headline. For those who are familiar with markets overall, would be familiar that an act like this is called “wash trading” and it is illegal in most regulated exchanges. To elaborate Wash trading is a process whereby a trader buys and sells a security for the express purpose of feeding misleading information to the market.

Thanks to reports like Bitwise this issue is now being addressed. has now acknowledged the issue and say they’re working on bringing more clarity to their site.

Also Read: Trust Only These Ten Cryptocurrency Exchanges, Warns Bitwise Asset Management

It’s not just Coinmarketcap, Messari too introduced two new metrics yesterday: “Real 10,” the trading volume from the 10 exchanges found to have real volume and “Liquid-Cap,” an alternative to market cap.

The key here is that all this wash trading that’s been discovered hasn’t actually affected the price of bitcoin itself in any meaningful way. In fact, if one focus only on the real 10 exchanges, they may see that this market is much more robust than previously perceived.

Argentina’s love for Bitcoin

While things still are on the cliff hanger for cryptos, Argentina is rapidly becoming one of the most bitcoin-friendly nations on the planet. The media is ripe with news which says that there is no crypto winter in Argentina. In addition, the state has recently started accepting bitcoin to pay for public transportation. Though there is an ample number of local exchanges in the country and it is easy to buy crypto, one can see that the level of peer to peer transactions on is rising steadily.Maybe this rising interest forced Tim Draper to meet the President of Argentina.


The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Mati Greenspan
45 Articles
Mati Greenspan is the Senior Market Analyst at eToro, a global social trading and investment platform. Mati is a licensed portfolio manager in the European Union and his main focus is on macroeconomic analysis, portfolio diversification and cryptocurrencies. Follow him on Twitter at @matigreenspan

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