Ashley Cole Posted October 26, 2019 Share Posted October 26, 2019 Damning statistics from yesterday's (October 23rd) trading appears to show Binance, the world’s largest exchange, partaking in wash trading. The past month or so has been a volatile time for Bitcoin’s price and as such the trading volumes. Bitcoin has fallen dramatically, most notably on the 25th of September and there was another drop in price on October 23rd at around 12:40pm UTC. With volatile markets like this, exchanges usually see a reflection of this in their statistics. For example, OkEx saw its BTC spot price decline by 5% within the initial 4 minutes session on October 23rd and the quarterly Futures contract, dumped by 6.2% during the same time window. OkEx was not special in terms of these dumps, most other derivative exchanges like Huobi and Bitmex also saw similar statistics. However, Binance, an exchange known for spot trading, did not see a similar drop. Binance had an insurance fund over 10mn USD (as of 23 Oct 2019) and their latest daily trading volume passed 0.8bn USD. Now Changpeng Zhao and other Binance supporters may say that their strategy and a bit of luck could set them apart from the other exchanges. However, a closer look at their data in comparison to other major exchanges reveals some potentially damning evidence. The evidence As previously mentioned, exchanges usually see a shift in trading volume when the market is volatile. As the figures show below, OkEx, Bitmex and Huobis trading figures for the price drop on the 25th September and 23rd October illustrate this. OKEX Bitmex Huobi However, Binance figures for the dates of Bitcoin price drops the trading differential is not as stark. This is most noticeable on the October 23rd date. Binance Certainly this is a little troubling, especially when you consider that one plausible reason for this is wash trading. The evidence only increases when you look at the data for a 4 hour period. BitMex Huobi OKex As you can see the statistic in terms of Bitcoin traded remains largely similar between Bitmex (30K-100K), Huobi (20K-70K) and OkEx (20K-80K). Yet for Binance it is eerily stable and is much lower, staying at just 5K. The pattern is also different to the other three exchanges. Coincidence? I think not. The damning statistics don’t end there, a closer look at order book depth also reveals some issues. As the figure below shows, BitMex had a quote size around 100 BTC on average ( [bid size + ask size] / 2), OKEx around 60 BTC while Binance was merely less than 2.5 BTC. Yet peculiarly, when OkEx and Binances futures trading volume was looked at, Binance had the greater amount. How can their order book be less, but their trading volume higher? For many this would be a clear indication that Binance had washed some trading off the books. Conclusion I suppose we will have to wait and see what the Blockchain transparency institute (BTI), the one who listed a number of exchanges but not Binance have to say about this matter. Although, their track record is less than perfect too, with undeclared funding and dubious research, so you shouldn’t hold your breath on any clear or trustworthy response. Quote Link to comment Share on other sites More sharing options...
Bonnie Berry Posted October 26, 2019 Share Posted October 26, 2019 Anyone thinking this is shocking has no clue about things. This happens with almost every big or small exchange. Quote Link to comment Share on other sites More sharing options...
Norm O'Neill Posted October 26, 2019 Share Posted October 26, 2019 Not just exchangers but even big hands are involved in this dirty game… Quote Link to comment Share on other sites More sharing options...
Alice Frampton Posted October 26, 2019 Share Posted October 26, 2019 Binance is king of these things. Not first time they are caught, but authorities are blind because it’s all part of the system. Quote Link to comment Share on other sites More sharing options...
Ben Thompson Posted October 26, 2019 Share Posted October 26, 2019 Lol, even a kid knows this is common. What’s new? Quote Link to comment Share on other sites More sharing options...
Upul Tharanga Posted October 26, 2019 Share Posted October 26, 2019 I left Binance 7-8 months back, and I am glad I did. Quote Link to comment Share on other sites More sharing options...
Latham Lapard Posted October 26, 2019 Share Posted October 26, 2019 Authorities are blind. It makes me laugh that something so obvious can’t be caught? It’s because they too get their health share from all this! So how will they catch? Quote Link to comment Share on other sites More sharing options...
Anne Morris Posted October 26, 2019 Share Posted October 26, 2019 It’s so dangerous if this is really true on the observations given above. Why are the Blockchain Institute not doing anything about this??? Quote Link to comment Share on other sites More sharing options...
KYCbench. Posted October 26, 2019 Share Posted October 26, 2019 Silence from Binance says it all... Soon this news will die down Quote Link to comment Share on other sites More sharing options...
Alick Bannerman Posted October 26, 2019 Share Posted October 26, 2019 How do you guys think this is normal and okay? This is illegal and just because of our mindset that it’s common is allowing these thief to continue!!! Quote Link to comment Share on other sites More sharing options...
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