According to new research by analytics platform The Tie, over 85 percent of cryptocurrency exchanges are reported to have incorrect or suspicious trade volume.
The study took figures from the top 100 cryptocurrency exchanges by trading volumes. It compared the number of estimated visitors to each exchange by the amount of crypto reported being traded.
Major differences found between the leading trading platforms and that of smaller ones.
By taking the number of monthly visitors and trading volume averages allowed the team to estimate roughly what exchanges’ trading volume would be expected to be. There were some major discrepancies, and around 59% of the volume was over 10 times what they were expected to be.
These figures come at a time when both commentators and market participants are paying increased attention to exchanges’ reported trade volumes, following the publication of further research suggests many such volumes are highly inaccurate.
In total, we estimated that 87% of exchanges reported trading volume was potentially suspicious and that 75% of exchanges had some form of suspicious activity occurring on them
The discoveries match previous observations that some exchanges were revealing higher trading activity, with a handful of accounts possibly powered by bots achieving unusually high volumes.