The reports of ‘fake trading volume’ on cryptocurrency exchanges were seen as a deceptive practice employed by the Exchanges to increase the marketability of their Exchange. The method is harmless as it mainly involves ‘wash trading,’ however, the volume data accentuates the actual volume and is unethical as well.
AnChain.ai performed the analysis on the ten largest Gambling Dapps on the EOS blockchain. Gambling DApps dominate 65% of all EOS DApps transaction volume. Games account for 12%, Marketplace for 7%, various uses for the remainder. According to the results of the analysis on the top 10 EOS Dapps by AnChain.ai,
“We are able to determine that blockchain bots contributed to 51%of unique accounts and 75% of transactions, equivalent to roughly $6 million in transaction volume, daily!”
The implication of these Bots
Bots are being employed to increase the marketability of a Dapps by boasting with numbers. Nevertheless, the numbers projected are dupped and false. Hence, it creates a lot of problems for regulators, interested entrepreneurs, and trade analyst to assess a particular blockchain.
Nevertheless, the practice has been followed since the internet revolution, when bots were or instead are being used to increase the visibility and user-base of a website. According to estimates, 40% of the internet traffic alone in 2018 was generated by bots.
However, cryptocurrency enthusiasts are driven by transparency in the system, which is being compromised by the unethical marketing attempt.
The analysis was performed on a small group of Dapps on the EOS blockchain alone. Including Tron and Ethereum, together they recorded 2,600+ Dapps, 253K users, and $43 million in daily volume as of April 22, 2019. The actual presence of Dapps and Web3 browsers is also hardly relevant in the current world. Hence, the crackdown on the reported volume will reflect the real stand of the cryptocurrency markets.
Do you think that the reported Dapps data would negatively affect the prices? Please share your views with us.
Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com