Report: The transaction model alone is not enough to prove the exchange’s forged trading volume

According to AMBCrypto, several reports appeared this year detailing the huge differences between the actual trading volume of the exchange and the reported trading volume. However, a recent report by CryptoCompare, a cryptocurrency market aggregator, condemned this claim, saying that the trading model may not explain everything. The report points out that talking about the “quality” of an exchange is based on several factors of custom analysis and tiered scale transactions, including geography, legal assessment, investment, trade monitoring and quality. Based on the above, CryptoCompare scored a level between AA and f, and only 6 exchanges received an “AA” rating. On the issue of returning to the trading model, the report pointed out that the correlation between “quality” and trading patterns based on the above indicators is a “challenging” test. “This raises concerns that market makers are trading in different models to avoid being discovered.” We believe that because trade distribution patterns can be easily changed, they do not adequately reflect market quality. The report further proves that trade pattern judgments may lead to “false positives and false negatives”.