OKEx Joins League with BitMEX and Binance to Disclose Trustworthy Trading Volume
Wash trading has been a complaint in the cryptocurrency trading community. With many exchanges showing fake volumes and getting on top of Coinmarketcap, people do not know which exchanges trust. And OkEx together with BitMEx and Binance will work together to solve this problem.
In a recent research report released by Alameda Research, a professional quantitative cryptocurrency trading firm, revealed the tactics of how exchanges artificially inflate trading volume in order to climb to a higher ranking on CoinMarketCap. Alameda Research concluded that about 70% of the total trading volume is fake.
The research found that multiple self-claimed big exchanges failed the tests. Taking a closer look, these failed exchanges have used sophisticated but suspicious tactics to inflate trading volume in order to acquire a higher CoinMarketCap ranking, such as copying the same transaction figures from other large and regulated exchanges, sneaking in large, fake transactions amid a flurry of smaller ones, etc.
Beyond the shrewd wash trading tricks, Alameda Research found that Asian exchanges are playing a dominant role in the crypto trading globally. More specifically, it claims that crypto—including both “spot” trades of actual digital assets and derivatives, like bitcoin futures—trades $38 billion in real volume a day, and 87% of that happens on Asian exchanges, with just 9% happening on the U.S. counterparts.
In the Research’s conclusion, OKEx came in the top place on its volume correlation above those of other regulated exchanges (mostly the U.S. exchanges), scoring at 98.9, followed by Huobi Global, CoinTiger, and BitMEX. This criterion indicates how closely tied the volume by time of the surveyed exchange is to the volume by time of the regulated exchanges.
OKEx, the Malta-based exchange, has been cleared from not participating in wash trading. Other exchanges that have been cleared include Binance, Coinbase, BitMex, Huobi, etc.
OKEx received a score of 4.5 out of 5 in the test, putting it in the same league as BitMex and
Binance to become one of the most trustworthy crypto exchanges in the world.
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