Trust Only These Ten Cryptocurrency Exchanges, Warns Bitwise Asset Management

By Nivesh Rustgi
Published March 23, 2019 Updated March 23, 2019
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Trust Only These Ten Cryptocurrency Exchanges, Warns Bitwise Asset Management

By Nivesh Rustgi
Published March 23, 2019 Updated March 23, 2019

Reports of cryptocurrency Exchanges faking trading volume by wash trading have become rampant in the Financial market. What was once perceived to be something based on only suspicion and allegations is now coming out with documented proof.

Bitwise: Actual volume of trading is only $273 million

Recently, TIE had released a report of its independent analysis of discrepancies found in the reported trading volume of exchanges. Furthermore, according to TIE’s research 75% of the Exchanges reported fake trading volume data. However, according to the new report by Bitwise Asset Management, the actual percentage is 90%. Both of them used a different approach but seemed to have reached a similar conclusion.

List of ‘Trusted’ Cryptocurrency Exchanges According To Bitwise

The research parameter for Bitwise Asset Management was ‘trading volume’ data with respect to the amount of Bitcoins held in the exchanges. On comparing the data from several Exchanges, the report found authentic similarities in only ten Exchanges. They also found that nine out of the ten Exchanges have procured the required regulatory licenses. Binance Exchange was the exception out of the 10.

The other nine exchanges that reported authentic trading volume as per the report are BitFinex, BitFlyer, BitStamp, Bittrex, Coinbase Pro, Gemini, itBit, Kraken, and Poloniex.

 What does it Mean for the Cryptocurrency Markets?

The total volume of trading is an independent factor that does not contribute to the ‘circulating supply’ nor the price. Hence, the total market capitalization is not directly affected by the reported trading volume. However, exaggerated reports of daily volume could affect market sentiments negatively.

The technique used to exaggerate the volume data of exchanges is ‘wash trading.’ By faking their data, the Exchanges are successfully able to climb the rankings on Exchange list according to trading volume. Furthermore, the rankings earn them customers and a heavy coin listing fees as well.

The fake reported data on Exchanges is also a factor behind SEC’s reluctance to pass an ETF based on Bitcoin or altcoins. The regulatory bodies around the world will most likely crack down on the exchanges and weed out the fake data. Nevertheless, the road towards progress is steady and comparable to the current traditional asset like ‘Leveraged ETF.

What are your views on reported fake volumes data? If it’s true, what steps must the crypto-community take? 


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
Nivesh Rustgi
1181 Articles
Nivesh from Engineering Background is a full-time Crypto Analyst 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)