- Fake volume report is a good step towards bringing transparency in the industry.
- “It’s not so much Coinmarketcap’s fault, everyone tried to blame on them,” CZ.
In the wake of a research report that claimed 87% of reported cryptocurrency exchange daily trading volume could be fake, the CEO of Binance Changpeng Zhao (CZ) on an interview with Cointelegraph said that the fake volume report is a good step towards bringing transparency in the industry. CZ added that contrary to the belief that CoinMarketCap is to blame, the popular listing website had absolutely nothing to do with the situation:
“It’s not so much Coinmarketcap’s fault, everyone tried to blame on them [sic]. But CoinMarketCap has a very simple reporting mechanism where every exchange reports their own data to them, and they just show it.”
He continued to say that Binance will not be lured into starting a Twitter war with CoinMarketCap which he said was “kind of childish.” However, the Malta-based exchange is currently working with CoinMarketCap to find a solution to the problem. CZ also said that delisting an exchange found faking volumes could serve as punishment and in turn contribute to mitigating the issue.
The new research released by Bitwise Asset Management and The Tie took into account data from 97 crypto exchanges. The report detailed that most of the crypto exchange platforms were providing faked volume to the listing website – some 87% of them to be precise.
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