Bithumb Accused of Inflating Reported Trading Volume

Bithumb Accused of Inflating Reported Trading Volume
фото показано с : news.bitcoin.com

2018-12-21 03:00

An investigation conducted by Crypto Exchange Ranks (CER) has alleged that Bithumb, the largest Korean digital currency exchange by volume, has drastically inflated its reported trade volume during the second half of 2018. The report asserts that a number of irregular patterns identified in Bithumb’s trade activity suggest “apparent trade manipulations being performed.”

Also Read: Former IMF Economist Mark Dow Closes $14K BTC Short

Report Accuses Bithumb of Dramatically Inflating Trade Volume

Research carried out by CER alleges that Bithumb uses “various trade volume manipulation techniques” to inflate its reported trade activity. The report also alleges that the exchange uses a “multi-factored approach” to conceal the volume irregularities.

The analysis asserts that Bithumb was ranked at the lower end of the top 10 exchanges by volume according to Coinmarketcap at the start of September 2018, posting approximately $350 million in daily trade.

The report notes that Bithumb’s 24-hour volume suddenly increased to over $1 billion during the second week of October, with the exchange’s purported volume continuing to rise before peaking on Nov. 11 with Bithumb ranked as the largest exchange by reported daily volume with $4.4 billion – more than ten times the average 24-hour volume posted during summer.

Three Irregularities Identified in Bithumb BTC Trade Volume

The report identifies three features of Bithumb’s recently reported BTC volume that it found to be indicative of manipulative practices.

The first feature points to “a significant rise in volume” that appeared to occur daily from Aug. 25 until Nov. 12 in which a large “comb-like” spike in trade activity is posted during the first minutes of 11.a.m local time that comprised between 90 percent and 95 percent of 24-hour trade volume. News.Bitcoin.com previously reported on the 11 a.m. Bithumb volume spike following suggestions that the daily surge in trade activity was a result of a trader or traders seeking to take advantage of the exchange’s 120 percent fee payback promotion through wash trading.

The second period, running from Oct. 8 until Nov. 11, was characterized by “irregular trade volumes not aligning with price moves.” The analysis found that said trading activity drove a rise in daily trade volume from 22,000 BTC on Oct. 8 to a peak of 106,000 BTC on Nov. 6, before volume dropped by more than 56x to 1,538 BTC on Nov. 12, down from 87,000 BTC during the previous day.

Lastly, the report notes an accelerated increase in the daily average transaction size executed on Bithumb. The analysis found that the average daily transaction size increased 8.7x from 0.21 BTC during the period preceding Aug. 25 to 1.83 BTC by Oct. 15, before posting a peak of 5.88 BTC on Nov. 11. Since Nov. 12, daily average transaction size has fallen to 0.17 BTC.

Daily Volume of Altcoins Exceeds Market Cap on Multiple Occasions

The report identifies a number of unusual patterns in the reported volume for a number of the most heavily traded altcoins on Bithumb from between Jun. 1 and Nov. 22, including LTC, ETC, XMR, ZEC, DASH, BTG, OMG, QTUM, and WTC.

Over the examined period, the report states that WTC saw the most intensive burst in reported trade activity, with daily volume of increasing by 350x from 348,000 WTC to 122.5 million WTC “on average during the pump.” WTC’s daily trade volume on Bithumb would then drop by 1,450x in a single day, falling from 206.7 million WTC to 141,800 WTC on Nov 12.

Daily volume was found to have exceeded the total capitalization of WTC by multiple factors on several instances, including on Nov. 8 when trade activity was four times that of WTC’s market cap.

The 24-hour trade volume for OMG and BTG were also “inflated to levels exceeding their capitalization,” with OMG daily volume reaching 3.5x its capitalization on Nov. 28, and BTG posting volume 1.8x its market cap on Nov. 22.

Do you think that Bithumb’s reported volume is inflated? Share your thoughts in the comments section below!

Images courtesy of Shutterstock

The Bitcoin universe is vast. So is Bitcoin.com. Check our Wiki, where you can learn everything you were afraid to ask. Or read our news coverage to stay up to date on the latest. Or delve into statistics on our helpful tools page.

The post Bithumb Accused of Inflating Reported Trading Volume appeared first on Bitcoin News.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Safe Exchange Coin (SAFEX) на Currencies.ru

$ 0.0054306 (-0.25%)
Объем 24H $1.742k
Изменеия 24h: 1.41 %, 7d: -8.63 %
Cегодня L: $0.0053635 - H: $0.0055227
Капитализация $6.099m Rank 99999
Цена в час новости $ 0.0070862 (-23.36%)

bithumb volume reported trade exchange inflating trading

bithumb volume → Результатов: 43


Report: BitHumb fakes 94% of trading volume. Most manipulated coins include WTC, LTC, ETC, XMR, ZEC, OMG, and BTG.

As Yoseph Young explains it, in illiquid markets and trading platforms with inflated volumes, it is relatively easy to manipulate the price of small cryptocurrencies. While it takes many major factors and an unlikely correlation of events to bring down the price of major cryptocurrencies like Bitcoin and Ethereum, researches demonstrate that a similar result […] The post Report: BitHumb fakes 94% of trading volume.

2018-12-20 23:20


Фото:

New Exchange Security Scoring Model Offers Insurance Rates for Coin Holders

International cybersecurity solutions provider Group-IB has come up with a scoring model to grade crypto exchanges based on their level of security. The scoring model was created by Group-IB in conjunction with Swiss-based Cryptolns (which is operated by Swiss insurance broker APIS AS), and the grading is intrinsic to CryptoIns’ new cryptocurrency exchange insurance, which will allow exchange users to cover up to 15 BTC worth of digital assets held in their exchange accounts.

2018-11-13 00:43


Crypto Demand in South Korea Surges as Bithumb Records 15 Percent of Total Volume

Over the last 48 hours, the daily trading volume of crypto exchanges in South Korea has surged substantially by a range of 10 to 15 percent. Bithumb, the largest cryptocurrency trading platform in the local market by trading volume, has seen a spike in daily trading volume of the Bitcoin-to-South Korean won pair, which has […] The post Crypto Demand in South Korea Surges as Bithumb Records 15 Percent of Total Volume appeared first on CryptoSlate.

2018-11-5 13:10


Фото:

South Korean Exchange Bithumb Sells To Singapore Investor For $353 Million

Bithumb, South Korea’s largest cryptocurrency exchange by volume, has sold to a Singapore entity with the aim of releasing new services and stablecoins.   Officials Finalize Majority Stake Deal As Korean news outlet Naver reports October 12, BK Global Consortium paid 400 million won ($353 million) for a majority stake in Bithumb, having previously held a minority position in the company.

2018-10-12 10:30


Фото:

South Korea: Trading Volume Soars as Bithumb Reopens to New Customers

Major South Korean cryptocurrency exchange Bithumb has announced it will resume accepting new user accounts after resolving a dispute with its banking partner. Month-Long Impasse Ends As local news media outlet Yonhap reports August 29, Bithumb has come to an agreement with Nonghyup Bank, which in July stopped serving it, reportedly due to the exchange’s recent hack in which it lost over $30 million.

2018-8-29 16:00


Фото:

South Korea Exchange Bithumb Stops Withdrawls After Hack

$30 million worth of undisclosed cryptocurrencies has been stolen from Bithumb, one of the largest crypto exchanges in South Korea by trading volume. As it was officially announced the Seoul-based crypto exchange Bithumb had become a victim of a hack and had lost $30 million worth of undisclosed cryptocurrencies. Currently, Bithumb is considered to be

2018-6-20 13:47


Фото:

Crypto Exchange Bithumb prevents retreats after the $ 31 million hack

Bithumb, one of the largest cryptocurrency exchanges in South Korea by trading volume, is halting deposit and withdrawal services after hackers stole 35 billion won ($31 million) from the platform. The company said in an announcement today that the hack happened between late Tuesday night and early Wednesday morning local time. Although Bithumb has yet to

2018-6-20 13:29