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Blockchain Transparency Report Suggest Wash Trading on Binance, Kraken Being the Cleanest

The Blockchain Transparency Insititute recently published a report comparing the trading volumes on different crypto exchanges and which of them uses wash trading techniques to show an inflated number. The report came out to be a shocker as it reveals that Binance, the largest crypto exchange by trading volume also uses wash trading techniques, while Kraken is the cleanest.

Binance is known to be one of the most trusted exchanges for its numbers and the current report might shock many. The Blockchain Transparency Institute says that it uses an algorithm which allows it narrow down on accounts which uses wash trading.

The same report also suggests that exchanges like Gate.io, Bitso, Upbit, Bittrex, Poloniex, Liquid, Coinbase, Lykke, and Kraken are some of the cleanest exchanges with more than 90% of their trading volumes being real and free from any kind of wash trading.  Among all the exchanges that were considered in the report, Kraken came out to be the cleanest with 99% of its trading volume being free from any kind of wash trading.

Bitfinex, one of the most troubled exchanges in current times which is dealing with an accusation of covering up their losses worth $850 million almost made it to the list, which might have helped the firm to regain some trust of the community.

Wash Trading is Inevitable in the Crypto Ecosystem

Wash trading techniques have become a norm in the crypto space as many crypto exchanges resort to these techniques to inflate their trading volume number to attract more customers. Wash trading is basically initiating the same trade several numbers of times to show a larger volume.

The report by Blockchain transparency institute might have come as a shocker to many Binance fans, however, another report by Bitwise Asset management suggest that Binance is the only exchange among the top 10 to have real Bitcoin trading volumes.

The Blockchain Transparency Institute’s report claimed that

“17 of the CMC Top 25 exchanges to be over 99%+ fake with many greater than 99.5% fake volumes, including 35 of the top 50 adjusted volume rankings… Over 60% of all exchanges ranked on popular data sites have little to no volume and were found to be over 96% fake each.”