Leading Market Research firm, Cryptogenes recently released a report which audited Singapore’s 20 centralized cryptocurrency exchanges. The audit was done in collaboration with the School of Management Fribourg in Switzerland. Furthermore, the scientific auditing algorithm was double-blind peer-reviewed by the Global Finance Association.
Liquid – The Best Overall Crypto Exchange
The exchanges audited have a combined turnover of US$620 million per day, US$18 billion per month, and US$223 billion per year. Interestingly, the trading volume of the exchanges surpasses traditional exchanges. The report further mentions that the crypto market is growing steadily despite the lack of regulation.
Liquid, a platform operated by Quoine, was found to be the “best overall cryptocurrency exchange in Singapore”. In July, the exchange revealed the digital wallet address holding the proceeds from the Gram token sale it conducted
Further, in an Aug. 30 announcement, Liquid disclosed the public blockchain wallet address that now keeps all participating customer funds from Gram token sale. The reason for labeling the exchange as the best exchange is its level of trustworthiness and low fees. Cointiger exchange came second.
The third position was bagged by DigiFinex, which offers one of the best trading experiences with more order types and trading pairs than the other exchanges. Recently, DigiFinex partnered with TRON(TRX). The main aim behind the partnership is to together construct an ‘inclusive blockchain ecosystem.’
The worst exchanges as per the report were Ebuycoin, INCX, and Triple Dice.
“Without regulation, companies can just suspend operations or downgrade operations significantly, without much consequence at all,”
mentions the report.
BCOIN was labeled the worst exchange as users are unable to access the platform and when questioned about the same, they were asked to send confidential data.
The report notes a disappointing overall performance by Singapore cryptocurrency exchanges. Moreover, the report said that even well-known exchanges like Binance, which launched in Singapore and Upbit, a startup backed by Kakao, perform rather poorly, thus, highlighting that brand recognition is not a sufficient factor when choosing an exchange.
Are Cryptocurrency Exchanges “Faltering” Heavily?
While crypto-assets continue to be largely unregulated, exchanges have time and again been subjected to various allegations. Another report released by Blockchain Transparency Institute for Q3 2019 highlighted the percentage of wash trading happening on major exchanges including Binance, Gemini, Bitflyer, and OKEx.
According to the report, OKEx is among exchanges with over 99.7% of its volume made up by wash trading. OKEx’s Head of Operations Andy Cheung then denied the allegations and condemned the report on Twitter.
He said that BTI’s methodology was questionable as the company’s methods for arriving at those figures was not revealed. Regarding the case of trading volume, Cheung said that the unique market structure of cryptocurrencies called for a comprehensive methodology to yield accurate results.
He also explained that OKEx was different from retail-oriented exchanges because its clientele included professional trading firms, proprietary traders, and high-frequency trading firms.