on the crypto
There is no denying how the decision made Cboe Global Markets, Inc., one of the most important bags in the world for derivatives trading, to stop issuing new ones Futures contracts due to the very low trading volumes, it has caused great concern.
Probably as a consequence of this, the investment company recently Bitwise Asset Management has reached an equally alarming conclusion by studying the set of activities carried out by the multiple exchanges and related trading volumes.
It basically concerns the veracity of Bitcoin transactions: in a nutshell, at least 90% of these would be generated by the Exchange in a completely artificial way.
The strategy of trading platforms
Unfortunately, trading platforms do not rarely decide to manipulate data on volumes in order to look much larger than they really are.
The reason, of course, is clear: they have a desire to attract more customers.
Bitwise Asset Management, studying the business of well Exchange 81 over a period of 4 days, he noted that the actual trading was lower than that reported.
However, it was not only Bitwise that underlined these disconcerting data, but also a study carried out by Crypto Integrity, which, focusing on the activities of the month of February, reiterated how they were artificially inflated.
Bitcoin transactions: the conclusions of the Bitwise Asset Management company
Given the results of the analysis conducted by the investment company Bitwise Asset Management, it can unfortunately be concluded that almost all of the Bitcoin transactions it's bogus.
The aforementioned company had no choice but to communicate the results of its investigation to SEC (Securities and Exchange Commission) of the United States, focusing on how trading operations followed predetermined patterns and how volumes, for example, increased and decreased in easily predictable times, coinciding, among other things, with working and rest times .
The practice of wash trading: the worrying results of the study
Although suspicions have been around for a while, special attention has only recently been paid to wash trading, or a widespread practice in the financial world.
Specifically, it is one illegal strategy consisting of the simultaneous sale and purchase of the same asset (therefore, in this case, Bitcoin) in order to create the false appearance of an active market.
However, in the end, the figures that came out proved to be worrying: only a small percentage turned out to be the result of authentic trading.