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The Blockchain Transparency Institute (BTI) recently released its report on trading volumes on cryptocurrency exchanges.
The report revealed statistics about trade volumes on the top exchanges and how much of these are affected by wash trading.
The BTI makes use of a proprietary algorithm to keep track of trade volumes on the leading cyrptocurrency exchanges and reveal which of these trades have come as a result of wash trading.
The institute has been publishing reports since August 2018 in a bid to combat market manipulation. Crypto exchanges have been known to provide false data with regards to trading volumes, and the BTI came into existence as a platform that verifies the numbers.
Wash trading has gone down
Many investors avoid engaging with crypto assets due to fear of falling victim to market manipulation.
Players in the crypto industry have been taking measures to fight against market manipulation as the sector seeks to attain legitimacy.
By improving transparency on crypto exchanges, the industry as a whole becomes more attractive to institutional investors who will be a boost in the adoption of crypto.
According to the BTI, wash trading has gone down by 35.7% among the top 40 exchanges in the world.
The BTI says that the data-sharing processes between the institute and exchanges have improved, and this has led to enhanced mechanisms for the detection of accounts used for wash trading.
The information gathered by the BTI is used to shut down the accounts used to manipulate crypto markets.
Coinbase and Kraken among cleanest crypto exchanges
The report contains statistics about which exchanges have the least and the most amount of wash trading on them.
According to the results carried in the report, Coinbase and Kraken are up there with exchanges that have the least amount of wash trading on them.
The report also shows that exchanges in the US and Japan have the least amount of wash trading. This can be attributed to the strict restrictions in these countries when it comes to cryptocurrency and crypto related activity.
OKEx and Bibox appear on the list of exchanges that are affected the most by wash trading among the top 40.
These exchanges have close to 73% wash trading volumes. Due to the high rate of legitimate trades made on these exchanges, they remain among some of the top exchanges in the world.
More exchanges have come under the watch of the BTI over the last few months. It has been previously said that 95% of Bitcoin trade volumes may be inaccurate as a result of wash trading.
Having more exchanges come under the platform’s watch will help bring clarity to cryptocurrency trade.
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