(BlockBar) The Bitwise’s hypothesis that trading volume is fraudulent has been presumed to be false. Chinese users participate in 60% of the world’s Tether trading volume.
Not long ago, the Bitwise report concluded that 85-95% of encrypted currency transactions were forged, based on different technical analyses of the sharp increase in orders. The study also found that most of the trading volume came from the United States and was done on the global digital currency exchange.
If the results of this report are true, it is absolutely good news for American regulators. After all, encrypted currency exchanges are within their jurisdiction. However, this is not the case. From the most commonly used stable currency Tether’s liquidity on the chain, the results are quite different. Of course, it is not excluded that some exchanges have fraudulent trading volumes, but the results inferred from the real trading volumes of stable currencies are closer to the real trading volumes of digital currency exchanges.
Not long ago, the Wall Street Journal reported the latest findings. The conclusion shows that only 10 of the 81 major exchanges in the world reveal real data. The source comes from that Bitwise Asset Management Company, one of the applicants for Bitcoin ETF, submitted another report to the Securities and Exchange Commission (SEC) on the false turnover in the Bitcoin trading market. In the report, Bitwise mentions that 10 encrypted currency exchanges have published data that are authentic and that the ETFs intends to set prices of Bitcoin according to their data.
Bitwise said it had analyzed the trading activities of 81 Bitcoin exchanges during four days of March. The results show that up to 95% of Bitcoin transactions are completed by some unregulated exchanges through “dark box operation”, while the real and effective size of Bitcoin transactions in the market only accounts for 5% of the data. And all the other exchanges are trying to get higher CoinMarketCap rankings by falsifying data to attract more customers, and management charges a lot of listing fees. However, the report argues that such false transactions will not affect asset prices.
From Tether’s real trading volume, we can get different results. On-chain data analysis provides basic data on Tether trading volume in different regions. Data show that Tether’s trading volume reached an record high in the second quarter of this year. Most notably, trading volumes from Chinese users dwarf those of Western and global exchanges, accounting for more than half of the total trading volume of known traders. Although digital currency trading is strictly prohibited in China. But users from China participate in some of the world’s major digital currency exchanges through OTC transactions. In 2018, exchanges in the Chinese market received more than $16 billion in Tether demand. This year, this figure has now exceeded $10 billion.
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