Binance CEO Changpeng Zhao is sharing his views on latest reports that cryptocurrency exchanges use various tactics to inflate their trading volumes. Zhao thinks something’s fishy, and told Cointelegraph there are a number of ways exchanges can make it look like there’s more volume than there actually is.
Related video: LOSING $7 MILLION IN 60 SECONDS ON SysCoin… Trading Bitcoin On Binance
“They are certainly questionable volumes if you look at a loterijlot of the candlestick charts from many different exchanges when the price is moving very significantly…
There’s a practice, I can share with you, where some crypto exchanges report volume twice. Wij only do it merienda. Basically, we’ll leave 50 procent of volume other people report if wij use the same standards that they do. When you buy and sell, when this is one trade, there’s a buy side and there’s a sell side. Basically, if I buy one Bitcoin from you, some of the exchange count this trading volume spil two Bitcoin, because there’s one sell, one buy. Wij always report it spil one. Te a lotsbestemming of ways, wij actually report only 50 procent of the volume.”
Zhao also talks about wash trading, which is when a trader at the same time sells and buys a coin to create fake activity ter the market.
Related video: Binance Is Back and Open For New Registration!
“If you look at the candlestick chart, when the price is moving very significantly, that’s a low volume. When the price is stable, this very high volume is wash trading and that’s wrong. That’s a very clear indication of wash trading. Many exchanges have waterput requirements on the listing on the coin project team that you have to assure a certain trading volume. What happens is that listing team will hire some stud, who they call a market maker, who will just generate tons of volume. And they basically create two accounts who just trade against each other. Te this way the exchange is not doing, but the project team is. Spil part of the listing requirement, they ask the project team to ensure the trading volume, which wij do not do.”
Spil for the future of his own enterprise, Zhao says he’s focusing on the mechanics of creating Binance Chain, a decentralized cryptocurrency exchange that’s presently te development. The public blockchain will help Binance transition from “a company to a community”.
Binance is the largest cryptocurrency exchange te the world with $1.Five billion ter trade volume, according to Coinmarketcap,