BTI's algorithm connects to the exchange through its public API and websocket. The transaction is analyzed and the analysis report is sent to the exchange to verify the trading account. If there is a problem with the exchange's API, or if it does not respond to BTI's question about changing its limits to properly evaluate the exchange, BTI will analyze the order liquidity and volume pattern anomalies to verify the true volume.
- South Korean government: pay close attention to encryption market trends, suggest investors to invest in virtual currency carefully
After dehydration, the rankings of major exchanges?
Below are the top 12 exchanges for real trading volume.
Exchanges with a volume of less than 10% in the past 30 days are marked as BTI verified. The first exchanges verified by BTI included the nine exchanges with the most real trading volume. These exchanges include Coinbase, Upbit, Bittrex, Poloniex, Liquid, Kraken, Gate, Bitso and Lykke. The largest exchanges in the US, South Korea, Japan and Mexico are on this list. Among them, the real transaction between Coinbase and Upbit is 97-99%. Kraken's trading volume is the most real, more than 99%.
Binance and Bitfinex have not been validated, and both exchanges have more than 10% of the volume transactions. Last week, Bitfinex confirmed that Irisium's brush trading software focused on the largest trading pair and adjusted it, but did not adjust the trading pair for medium and low trading volume. Bitfinex's overall realism is about 88-90%, and the true trading pair's authenticity is 97%+.
BTI believes that the volume of Binance's main trading pairs is real, but there are 30 trading pairs on the exchange, and the volume of trading volume accounts for 25% to 75% of the total. The realism of Binance trading volume is about 85-90%.
Analysis of the brushing factor
Exchanges that falsify trading volumes use a variety of different strategies to try to deceive investors. The above-mentioned strategies for falsifying trading volume include: buying Twitter fans and likes, filling out fake orders, following the actual transaction volume of the largest transaction volume, and setting up a camouflage brush transaction so as not to affect the price.
BTI also found that many exchanges with more than 99% of false transactions have the same trading engine and trading model design. From the results of the online freelance website Fiver search results, the creation of a cryptocurrency trading website such as Binance, starting at only 850 US dollars, can set the brush transaction only 100 US dollars until the transaction volume reaches the top 10 CMC. The list on the CMC will be the main source of traffic for the exchange.
According to the general report of all exchanges, the average daily transaction volume of CMC is about 50 billion US dollars. After eliminating the amount of brush volume by the algorithm, the exact figure is about $400 million to $500 million. Approximately 88-92% of daily trading volume is forged according to the day. 92% of Bitcoin's daily trading volume is forged. Comparing the survey results with the volume trading volume of top-level data sites, the survey results are consistent with the overall market situation.
Among the 40 exchanges with the largest actual volume in the list, the counterfeit bitcoin has a trading volume of 65%. Most of the forged trading volume comes from OKEx, Bibox, HitBTC and Huobi. Among the top 25 tokens in the market, the Tron and ECH lists have the highest volume of tokens, with a false volume of 85%, and the number of false transactions in the volume of trading tokens ranked 24th and 25th.
Which currencies are in the brush?
Of the 567 tokens currently on the top 40 exchanges, 150 tokens have a daily volume of more than 50%.
Among the top 25 tokens on the market, Tron and Ethereum are the most highly executed tokens, with a false volume of 85%.
Stabilizing the amount of coins
A large number of brush exchanges prefer to use stable coins to brush, so there are many false coins in the volume of stable coins. For example, the actual transaction volume of GUSD is only 3%. As shown in the table below, USDT still accounts for 96% of the total stable currency after the brush volume transaction is eliminated.
Currently, USDC has the highest actual transaction volume of 43% among all stable currencies. Pax ranked second with 21%.
Source: Singular Finance