Cryptocurrency exchanges are hurting themselves, forging statistics on trading volume, believes the founder of Binance. He commented on the fall of Binance to the 8th line in the ranking of cryptocurrency exchanges by trading volume.

CEO Binance Changphen Zhao voiced his opinion about “inflated” trading volumes on many cryptocurrency exchanges.

“This is getting a little out of hand. The exchanges above fail to realize: CREDIBILITY is the most important asset for any exchange! If an exchange fakes their volumes, would you trust them with your funds?”

He attached screen of CoinMarketCap ranking, where Binance, which previously occupied the first lines of rating by daily trades volume, dropped to the 8th line. Although the screen, published out by Changpen Zhao, does not indicate those exchanges that overtook Binance, it is not difficult to find out which cryptocurrency exchanges are connoted by Changpen Zhao to forge statistics on their trading volume. According to CoinMarketCap, cryptocurrency exchanges FCoin, BitMax, BitMEX, OKEx, ZBG, and DigiFinex overtook Binance by reported trading volume. At the same time, Binance is ranked third in the ranking by adjusted trading volume, losing only to OKEx and DigiFinex, while BitMax stands only on the 43rd line, and FCoin is not included in the rating at all.

“But for the health of the industry, we need to let them know they are actually hurting themselves,” Zhao wrote.

At the end of March, BitWise analysts published a report, according to which 95% of bitcoin trading volume is fake.

BitWise Asset Management sent a report to the US Securities and Exchange Commission (SEC) stating that the volume of fake bitcoin trading reaches 95%. BitWise is one of the companies that recently filed an application to the SEC wishing to launch an exchange-traded fund (ETF) tied to the bitcoin exchange rate. In the presentation sent to the SEC, BitWise notes that, based on the analysis of 81 cryptocurrency exchanges, “the real market for bitcoin is significantly smaller, more orderly, and more regulated than commonly understood. 95% of Bitcoin trading volume is fake and/or non-economic in nature.”

Thus, BitWise insists that manipulations in the cryptocurrency market do take place, but they affect the way how statistics is displayed, not the trades themselves.

According to BitWise analysts, the popular statistical portal CoinMarketCap displays inaccurate data.

“Despite its widespread use, trading volume data on CoinMarketCap is inaccurate. It includes a large amount of fake and/or non-economic trading volume, thereby giving a fundamentally mistaken impression of the true size and nature of the bitcoin market.”