CZ Says Reports of Fake Bitcoin Trading Volumes Wouldn’t Make Sense – BeinCrypto

After an article appeared arguing that more than half of trading volumes are fake, Changpeng Zhao returned to set the record straight.

False volumes… but no culprit?

Last week, Forbes newspaper published the results of a survey claiming that more than half of the transactions recorded for Bitcoin on the exchanges are fake. Such incidents are reported every year. During the year 2019, Bitwise had already published a study arguing that 95% of Bitcoin trading volumes were simulated. Despite this already known problem, the news caused an outcry. Big names such as Binance have notably been cited among the platforms inflating their numbers.

An accusation that did not seem to please Changpeng Zhao, who did not hesitate to give his opinion on the matter. However, the entrepreneur did not deny the presence of false volumes on his trading platform. A to analyse dating from 2018 had also detected their presence on Binance, while hypothesizing that the platforms were not at fault in the phenomenon.

Indeed, the inflated transactions would be generated by trading algorithms. Their goal would be to make a token more popular than it actually is. Binance and its competition would therefore be powerless against them, since the falsification of data would not be their fault.

Inflated numbers without interest for Bitcoin?

Despite everything, another hypothesis suggested that the platforms could be complicit in the phenomenon. Indeed, the inflated trading volumes could make the exchanges concerned seem popular, and therefore give them a reliable corporate image with the public.

However, Changpeng Zhao would seem to imply that these bogus Bitcoin trading volumes had no benefit for either companies or cryptocurrencies. Indeed, a coin ranked number 1 such as Bitcoin would have no interest in inflating its volumes since it already has a monopoly. The phenomenon could also be valid for Binance, which ranks at the top of the rankings. Moreover, a wide margin would only arouse suspicion.

Source: Changpeng Zhao’s Twitter account

Forbes and CZ’s arguments arouse public doubts

Although the survey published by Forbes has caused a lot of ink to flow, many gray areas make the public doubt. Indeed, there would be no reliable way to assess the number of total daily transactions. Currently, each exchange is reporting a different number. The data can therefore be distorted at the source. Some Internet users therefore believe that this lack of accuracy makes the study obsolete.

Source: Changpeng Zhao’s Twitter account

However, the manipulation of volumes remains demonstrated. Some companies giving birth to their token may even pay experts to inflate the numbers for them. In 2021, Coinbase had scoop a fine for doing so. What to sow doubt and suggest that the most famous trading platforms would participate good for the phenomenon. CZ’s opinion could therefore have difficulty in convincing the public. Indeed, until the volumes are correctly reported, the public will not be able to disentangle the true from the false.

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CZ Says Reports of Fake Bitcoin Trading Volumes Wouldn’t Make Sense – BeinCrypto


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