Fake volume on a centralized exchange?
Not sure we should even be surprised about the rampant wash trading and volume inflation that is going on multiple centralized cryptocurrency exchanges anymore. Yesterday, it emerged that two leaders of the South Korean Crypto Exchange Komid have been sentenced to jail for faking volume.
Do we think with local authorities starting to take interest and making arrests, that exchanges may start to “follow the rules” so to speak? Or will they simply base themselves out of countries / jurisdictions that do not really care?
In any case, anytime these sort of crypto news emerge, it strenghens our position to promote the adoption of using decentralized exchanges. I look forward to the day where investors and traders do not have to doubt their positions on certain assets given that they could have made their analysis from completely fake volume!
If you want to go further down the rabbit hole, here is an interesting blog post that was published in March that looked a bit deeper into volume inflation that seems to routinely be happening:
If only there was a way for an exchange’s orderbook to be free of all manipulation?