Since the crypto market crash and the subsequent crypto winter, exchanges have had a hard time surviving, as controversies surrounding these platforms had a detrimental effect. A new wave of debates and discussion have taken over the cryptoverse after Tie report was published earlier this year. In a fresh take on fighting cryptocurrency fake volumes, The Crypto Lark, New Zealand-based crypto personality, spoke with Bobby Ong, the co-founder of CoinGecko, a cryptocurrency ranking website.
The cryptocurrency market data aggregator recently launched a “trust score” to provide a fairer picture of the market. Talking about the new rollout’s use case and touching upon the controversial subject of fake volumes by crypto exchanges, Bobby Ong stated,
“The 24-hours the reported volume of exchanges in the crypto space longer a good measure of exchanges liquidity. So in a traditional market volume from exchanges is a good indicator of how liquid exchanges are. So higher volume will indicate that the exchange actually has high liquidity and low volume indicate actually lower liquidity in the crypto market”
However, Ong stated that the “incentive to cheat is very high”. The unregulated nature of the space poses a big threat where anybody can masquerade as a big exchange constituting for the highest trading volume in the world by using “questionable techniques”.
According to the co-founder, these entities, under the pretense of high volume, sell the idea that they’re the biggest exchange to lure people into trading on their platform and subsequently increase traffic.
Ong alluded that a 24-hour reported volume is no longer useful and that there is a need to look at metrics beyond reported trading volume to understand the exchange’ s liquidity.
Applauding CoinGecko’s initiative, Crypto Lark commented,
“.. you guys are making a lot of friends and a lot of enemies at the same time”
He emphasized the need of the community’s trust for a reliable source of information regarding exchange volumes. The crypto market is plagued with manipulation and misinformation in the market, Crypto Lark cited and further said that these “trust scores” are very important in the unregulated space to keep checks on different platforms.
Subscribe to AMBCrypto’s Newsletter
Justin Sun on shaking down the Internet, Coin Metrics on Kin’s blockchain activity and more
Crypto News – 26 June – Justin Sun on shaking down the Internet, Coin Metrics on Kin’s blockchain activity and more
— AMBCrypto (@CryptoAmb) June 26, 2019
Crypto News – 26 June
Bitcoin breaches new resistances: In a sensational run that saw the coin surge by 15% over 24 hours, the world’s largest cryptocurrency breached the $12,000 mark, while also briefly touching the $13,000 mark, before falling again
Read more at https://bit.ly/2ZMkS10
Tone Vays on Bitcoin’s biggest strength: Tone Vays opined that Bitcoin’s biggest strength was the fact that it was completely “unconfiscatable” and that one’s BTC is completely safe if it is protected and secured with attention
Read more at https://bit.ly/2RD2BjL
Tron Foundation launches new inititative: Justin Sun’s Tron Foundation announced a $20 million TRX buy-back plan to promote community activity and market stability
Read more at https://bit.ly/2X8aA9W
Joe Kernen on Bitcoin, Libra: The once crypto-skeptic, CNBC Squawk Box’s Joe Kernen is of the opinion that Libra is for corporations, while Bitcoin is for the people
Read more at https://bit.ly/31MkqSa
Bloomberg on JPM Coin: According to a report by Bloomberg, the Jaime Dimon-led institution plans to launch the JPM coin and use it for bond transactions
Read more at https://bit.ly/2X75DTr
Fundstrat report on stablecoins: According to a recent report by New York-based Fundstrat Global Advisors, the FS CryptoFX Stablecoin index fell by a whopping 21 percent against BTC, with Gemini outperforming Tether [USDT]
Read more at https://bit.ly/2X5qPJw
BitGo’s latest collaboration: Bitcoin IRA has announced that it will be teaming up with BitGo to launch crypto-retirement accounts insured for $100 million
Read more at https://bit.ly/31UvjBz
Subscribe to AMBCrypto’s Newsletter