According to the latest report of the Bitcoin Transparency Institute (BTI), Coinbase and Kraken are among the cleanest exchanges in the cryptocurrency market.BTI published its 5th report on Sept 19 which verifies the exchange volumes of cryptocurrency.
It is to be noted that BTI first published its report on August 2018 with the help of its proprietary algorithm. According to the report – Since the starting of 2019, wash trading was reduced by 35.7% among the top 40 exchanges. Sharing these reports among the exchanges has come out to be very helpful and detection of accounts that have been doing wash trading is now easier.
The reports indicate that Kraken, Poloniex, Upbit and Coinbase are the cleanest exchanges with the lowest record of wash trading. While on the other hand, OKEx and Bibox have a higher wash trading rate. These reports are made by considering top 40 exchanges.
Further in the report, Japan and US are the leading exchanges that perform precise recordings.
Maximum of the BTC trading volumes are fake
Cointelegraph and Bitwise Asset Management declared that most of the trading volume that was seen on CoinMarketCap was a result of wash trading.
Wash trading refers to a type of manipulation in the market when buying and selling the same asset is done in order to display fake trading volume. This wash trading gives the impression on the market that the asset is high in demand. This wash trading is illegal in a regulated exchange.