The phenomenal bull run of Bitcoin in early 2018 put the spotlight firmly on cryptocurrencies. It sparked unprecedented public interest in this exciting new asset class. New altcoins sprung every day and so did cryptocurrency exchanges to cater to the growing demand for trading cryptocurrencies. Today, more than 250 cryptocurrencies are helping trade over 2000 cryptocurrencies through millions of crypto traders. Exchanges have become the lifeline of the crypto economy. But have these exchanges been honest to us? We don’t think so.
Crypto exchanges have been reporting fake data
Absolute transparency is the hallmark of blockchain technology. It is more a guiding principle for an alternative financial ecosystem that was born from the frustration of traditional finance. And yet, cryptocurrency exchanges – the guardians of this new financial ecosystem – are involved in faking trading volumes to attract unsuspecting traders.
In a shocking revelation by trading analytics platform The TIE, almost 90% of the trading volume that crypto exchanges display is fake. By all accounts, trading volumes of cryptocurrencies have been at its lowest in two years. If that rationale is followed, and with exchanges incorrectly reporting volumes, it could be even lower than what is reported. These are definitely bad news for the entire crypto community.
A close look at the figures indicates that the estimated real daily volume (during the period of analysis) was around $2.1 billion, whereas the reported volume was close to $16 billion, leading researchers to conclude that almost 90% of the reported trading volume is fake.
The report further states that as many as 75% exchanges have “unusual” trading volumes. This clearly means that one in every four cryptocurrency exchanges is reporting inflated trading figures.
Researchers arrived at these figures by looking at website traffic on all of these exchanges. According to The TIE, “The weighted average trading volume per web visit for Binance, Coinbase Pro, Gemini, Poloniex, and Kraken was selected as a baseline volume per user to calculate the expected volume. This amounted to $591 per web visit.” And using these baseline figures, the correlated expected trading volumes with website visits and compared the final numbers from their calculation to the reported volumes by the exchange.
Popular exchanges like BitMax, Coinbene, and IDAX are under the community’s scanner after figures surfaced that there was a massive difference between their estimated trading volumes and reported volumes. While BitMax reported a trading volume of $21 billion, its estimated volume was only around $180 million. Coinbene reported a trading volume of $12.8 billion, its estimated volume was closer to $320 million. These are serious deviations that has left the crypto community stunned.
Why honesty is the best policy?
BTCNEXT is creating the next generation of cryptocurrency exchanges that seeks to change the current situation that is plaguing the crypto market.
BTCNEXT is managed by a highly experienced team of Platinum Q DAO Engineering that has already implemented several successful projects and has a significant background in the blockchain and crypto trading industry. Their services also include providing IEO as well as listing and market making services. The exchange is actively listing coins and developing new services, including the mobile app.
BTCNEXT has partnered with Q DAO ecosystem’s stable coins, that are fully decentralized, backed by Bitcoin (as well as other top 10 currencies in the future) and pegged to fiat currencies, including USD (USDQ), KRW (KRWQ), JPY (JPYQ), SGD (SGDQ), HKD (HKDQ), CNY (CNYQ), RUB (RUBQ). All of these will be available on BTCNEXT soon. Traders will fall in love with the new stablecoins, which allow them to store funds in fiat while continuing holding a crypto token. There is no need to have an exit into fiats anymore. The ability to continuously operate within the crypto industry may be the spur that the crypto community needs for the next big move in the mass adoption across the globe.
Blockchain technology is empowering and it is the prerogative of the community to self-regulate and ensure that it adheres to the basic tenets of this revolution. If the community fails in doing so, there will be no time before governmental authorities start to burden the entire ecosystem with many regulations that there won’t be space for innovation.
BTCNEXT’s weight to customer service
BTCNEXT seeks to bring about complete transparency and top-notch security to create a trustworthy environment for crypto enthusiasts to trade cryptocurrencies with confidence. The paramount objective of BTCNEXT is to offer a safe, secure, and seamless trading experience to traders while staying true to the primary philosophy behind the creation of the blockchain technology.
For this reason, BTCNEXT places a lot of importance on customer service. It has created a holistic system that starts with training their customer service representatives using technical knowledge and skills to proactively resolve customer queries and issues within the shortest time possible. The customer service at BTCNEXT is active 24/7, in tune with the crypto market that never sleeps. BTCNEXT is ever-ready to help its customers get the best experience while using the platform to trade their digital assets.
BTCNEXT is creating a benchmark for the crypto community
As there are two sides to any coin, so can technology create two schools of thought. One wants to use it to create a transformative change in the lives of people while the other wishes to exploit it for unethical gains at the expense of other people’s financial loss. Cryptocurrency exchanges are no different.
Through the years, we have seen countless examples of scams and hacks where millions of dollars’ worth of funds were stolen. And now we come face to face with this stunning revelation that exchanges are massively inflating their trading volumes to create a rosy picture and attract unsuspicious traders. This has to stop and we, as a community, have to own enormous responsibility to clean up the crypto market if we wish to bring about a positive change in the world. BTCNEXT is a small step in this direction to change the market for good.
BTCNEXT exchange, the next generation spot and margin - trading platform, has been developed by Platinum Q DAO Engineering, which has also brought USDQ and KRWQ to the market, looking to edge together innovative solutions in collateralization.They plan to achieve it by using stabilizing mechanisms and neural networks for high - endurance stable coins.The one aspect of USDQ which makes it unique is that this stablecoin is decentralized.It has Bitcoin as a collateralized cryptocurrency debt backing up its value, instead of a centralized authority holding dollar bills, as in the case of Tether(USDT).In order to protect investors’ funds, BTCNEXT developers have implemented more than 300 security measures.In the near future, users will be able to trade over a hundred types of tokens including Bitcoin, Ethereum, and Litecoin.For more information, visit their website and follow them on Twitter, Instagram, Telegram, Facebook, Medium and LinkedIn.
CEO of Platinum