There have been many scandalous revelations with respect to the exchanges over the past, and now a report from Blockchain Transparency reveals that most cryptocurrency exchanges are faking the cryptocurrency trading volumes. The report infers that 87% of all trading volumes on the top-25 exchanges are fake.
The widely used CoinMarketCap too is not a reliable source, marks the report. It suggests that out of 25 exchanges on CoinMarketCap, 11 had their volumes faked for up to 99%. Twelve of the major exchanges likes Huobi and OKEx are faking more than 75% of the trading volumes, said the report.
Many of these exchanges are situated in places like the Cayman Islands and Gibraltar, which do not have many regulations to keep the manipulation in check.
Malta-based Binance and British Virgin Island-based Bitfinex are the only two exempted from charges of manipulation in the report. However, Bifinex has been charged with pumping up the Bitcoin in 2017. It was alleged that Bitfinex issued Tether, but when it comes to the trading volumes, the data of Bitfinex seems reliable, noted the report.
Under the leadership of Changpeng Zhao aka CZ, Binance seems to be a reliable option as it has always proved itself, according to the report. The exchange recently pledged to donate all of their listing fees to charity. It is also actively participating in developing the ecosystem by taking up initiatives to impart education and generating funds.
The exchanges were also involved in manipulating the volumes usually let the investors buy and sell to themselves, giving an illusion of trading activity on exchanges. This is illegal in many jurisdictions and thus, the exchanges in the are with less to no regulations, are seem to be involved in what is known as Wash Trading.
Exchanges like Coinbase and Kraken, which are major US exchanges, were not a part of the top-25 list. These exchanges are mostly fiat and do not participate in wash trading like other on the list.
This is a shocking revelation and is exptected to impact many crypto holders and others planning to take an informed decision. The entry of institutional players like Nasdaq and NYSE may bring in more regulations and might reduce the chances of data manipulations.
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Tron [TRX] surges by over 6% as token storms back into the top 10
Tron’s [TRX] price was surging, even as the cryptocurrency market cooled down following a brief rally anchored by Bitcoin [BTC]. The collective market cap stood at $324 billion. Following the surge, the token was back among the top 10 coins of the cryptocurrency market, a month after CEO Justin Sun promised the same. His tweet had said,
“#TRON will be back to Top 10 in June! #BitTorrent will be Top 30 in Q2! Let’s wait and see! #BTT $BTT $TRX #TRX”
However, despite the fact that Tron’s native token was prospering, BitTorrent [BTT] was still down at the 35th position on CoinMarketCap.
Despite low trading volume lately, TRX gradually climbed to break its resistance at $0.035. The latest bullish swing was speculated to lead TRX to breach the much-awaited $0.04 resistance.
Tron’s climb up the charts and into the top 10 is a surprise for some, especially since Tron overtook Cardano. The Charles Hoskinson-led crypto is still on a high after recent updates in its ecosystem, including the Shelly testnet going live.
Tron however, has not being standing idly. Recently, CEO Justin Sun revealed that Tron’s DApp trading volumes has exceeded those of EOS and Ethereum. Further, the Tron Foundation recently released a version of the Odyssey update on its mainnet. Further, Tron’s blockchain saw the release of a USD-backed stablecoin by Carbon recently.
Tron [TRX] 1-hour chart
Tron was up by 6.40% over the past 24 hours, driving its valuation to $0.039. Additionally, the digital asset rose by 3.7% over the last hour, at press time. TRX registered a market cap of $2.58 billion and a 24-hour trading volume of $900 million. The exchange with the highest TRX trading volume was BW.com, contributing 9.52% to the volume via the TRX/USDT trading pair.
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