New crypto currency exchange overstated data on trading activity

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New crypto currency exchange extremely large trading volumes, absolutely not commensurate with the number of registered users that put them on a par with the best popular old platforms.

Thanks to their machinations, they get a very high rating among exchanges on CoinMarketCap providing unreliable data.

The calculation, for example, indicators for small crypto currency exchange IDEX shows that daily trading volume is about $2.9 million According to Dapp Radar, IDEX operate approximately 2,000 — 3,000 users per day. On average, it turns out that each trader conducts operations in the amount of about $1000, which is a very real indicator.

Researchers from the blog CryptoExchangeRank did the same calculations on indicators of several new exchanges, showing increased trading activity on CoinMarketCap, comparing the statistics of visits. Most attention attracted new platforms, such as BCEX, BitForex and BigOne, who in recent weeks has also grown incredibly in the rankings, which could not fail to arouse suspicion.

Fraud on BitForex

Analysis cryptobiina BitForex, which took a leading position at the level of popular KuCoin and Kraken, showed that only a small number of traders in a relatively unknown exchange are very active bidding beyond normal level in several times.

“According to statistics, the number of users on BitForex is 29 000. On Kucoin was 889 000, Kraken – 666 000. As can be seen, the number of users on Kucoin 30 times higher than BitForex, and on Kraken at 23%,” — noted in CryptoExchangeRank.

Have BitForex there are still about 2,000 followers on Twitter, and the old exchanges they number in the hundreds of thousands. This fact shows how truly limited community BitForex.

Visibility large volumes of trading

New exchanges are usually used to promote new token-ICO, and lists of specially presented with great fanfare in an attempt to mimic the listing Binance, KuCoin or Huobi, which allows in some way to increase trading activity. Due to high rating of such exchanges get more traffic. However, exploring BitForex, analysts concluded that these trade indicators are unreliable:

“BitForex shows inflated trading volumes, to improve its rating to attract the attention of the greatest number of new users and crypto investors. However, they have certain inadequacies of the treated volume with the presence of users as on the exchange there is not enough real users and the community, which would be confirmed in social networks or Telegram”.

If the average monthly trading volume per user on Binance is less than $1,000, the average rate in BitForex is greater than $12 000. Such activity shows that, most likely, representatives of the exchange to resort to marketing ploys to attract real buyers, for this driving circular orders, thereby demonstrating large volumes of trading.

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