Research: 64% of cryptocurrency transactions are fraudulent, but the “false rate” has been reduced by 35.7%.

Through long-term observations, the Research Institute's Blockchain Transparency Institute (BTI) has collected evidence that Tether (USDT) was deliberately used to influence the cryptographic market. Of all trading activities, 64% are fraudulent transactions.


A recent BTI study found that the number of false transactions that occurred between mainstream cryptocurrencies was worrisome. By calculating the difference between the transaction volume of each cryptocurrency record and the adjusted transaction volume, BTI has been able to accurately determine the "forged" transaction volume of the cryptocurrency exchange.

Tether (USDT) is the fourth-largest cryptocurrency market and the most stable currency in terms of trading volume. It is found to be one of the most fraudulent assets. According to BTI's survey, up to 64% of USDT trading volume is considered to be counterfeited by brushing.

BTI's latest report covers 40 exchanges. BTI pointed out that in 2019, false transactions actually fell by 35.7%.

“According to our data, the most 'clean' exchanges during this time are still Kraken, Poloniex, Coinbase and Upbit. On the other hand, OKEx and Bibox account for the volume of transactions in our top 40 real trading volume rankings. To the highest ratio. Although the number of false transactions on these exchanges exceeds 75%, their real trading volume (excluding false transactions) remains in the top 20."

Analysis of different currencies shows that 48% of Bitcoin's trading volume is a false trade. Ethereum's false transactions accounted for approximately 75%, XRP was 55%, and Liteco was 74%. But what's even worse is that 91.23% of the Monroe trade is a false trade. For small, non-liquid currencies, brush trading is more common.

However, among the top 25 currencies, the lowest proportion of false transactions is MakerDAO, currency, and LEO – no more than 25%.

“Brush trading” is the act of artificially creating high volume by selling and buying tokens. Some cryptocurrency exchanges often do this to counter the activity of their platform and attract new users.

USDT transactions are concentrated in currency security and OKEx, and analysts have noted signs that the two companies may have false or automated trading activity. Recently, OKEx denied having made false transactions on its platform.

In the past two years, the growth of bitcoin prices has been consistent with the trend of USDT issuance. This largest stable currency has changed from a small asset with only a few million tokens to the most active currency. The USDT cannot be redeemed directly, usually by switching to another stable currency with a legal currency export.