Crypto Exchanges, Wash Trading and Why It’s Time for a Spring Clean
Fake news, fake companies, and fake liquidity – navigating the cryptocurrency market is often as clear as mud, especially considering up to 86 percent of total reported cryptocurrency trading volumes are likely to be false, according to research compiled by The Block. The traditional finance sector is no stranger to wash trading and neither is the digital asset market, with several crypto exchanges supposedly getting their hands dirty in order to clean up trading volumes. BKEX, a crypto exchange registered in the British Virgin Islands, was reportedly found to be copying Binance’s trade history to the exact number, manipulating trade volumes to create the illusion that it was an attractive platform to buy and sell digital assets. Why? Because more trading activity translates to a higher position on …