Another shadow has been cast on the much discussed e-currency, Bitcoin. On Sunday, cryptocurrency trading platform Bitwise, released a report showing that a large number of bitcoin currency trades are fake.
Market miss representation
A staggering 95 percent of bitcoin spot trades are exaggerated by unregulated exchanges, according to the report.
"People looked at cryptocurrency and said this market is a mess; that's because they were looking at data that was manipulated," says Matthew Hougan, global head of research at Bitwise.
Bitwise’s report analysed the 81 largest crypto exchanges, which convert bitcoin for $6 billion on a daily basis. The report, however, mapped out a very different picture. Showing that only 5 percent of daily trades were based on actual trading.
Harmful impact on the industry
The saying might go 'fake it till you make it', but inflating bitcoin sale numbers is only going to hurt public perception of the already less than credible e-currency market.
Hougan also addressed public perception, telling CNBC: "the idea that there's fake volume has been rumoured for a long time; we were just the first people to systematically look at which exchanges were delivering real volume."
We believe that information should be free and will therefore never put up a paywall.
If you like reading our reports about the Scandinavian business scene and would like to donate towards the upkeep of the site, we would be very grateful. Click here to donate.
Business | 🕐 08. May. 2020
Business | 🕐 01. May. 2020
Business | 🕐 07. May. 2020
Culture | 🕐 14. Mar. 2019
Tech | 🕐 02. Dec. 2019
Tech | 🕐 22. Nov. 2019
Startups | 🕐 25. Nov. 2019
Startups | 🕐 14. Nov. 2019
Startups | 🕐 21. Nov. 2019