Binance CEO explains why there is so much Bitcoin and a crypto exchange that is supposed to be pretending


Binance CEO Changpeng Zhao says there is a simple reason why Bitcoin and the encryption exchange are pretending.

Cryptocurrency Index and beta fund provider Bitwise dropped a bomb report on Wednesday to determine 95% of the volume on unregulated crypto exchange is likely a fake. Bitwise is currently seeking approval for the offer of a fund traded on the Bitcoin stock market and has submitted the report to the US Securities and Exchange Commission.

According to Bitith, the vast majority of reported crypto-exchange quantities are "counterfeit and / or non-economic nature … the true market for bitcoin is significantly smaller, more orderly and more regulated than normally understood."

Source: SEC / Bitwise

When we compare book orders to Coinbase Pro with a long list of other stock exchanges, Bitt says that he discovered a number of suspicious trading patterns. In particular, the report sets out a number of exchanges that appear to have complete succession orders: one purchase order, one sales order, one purchase order, and so on.

┬╗Compare this with Coinbase Pro, where we saw a more random distribution of buying and selling activities. It is very unlikely that there is a complete, even distribution of economic purchasing and sales orders. "

According to Zhao, exchanges have transformed the volume of trading in order to reach a high position on CoinMarketCap (CMC), which maintains the public ranking of all crypto exchanges by volume. Exposure CMC drives traffic and business.

According to Zhao, the CMC brings several referrals to Binance as any other party. This makes sense, considering that the CMC is likely to be the largest website in the crypt, which according to the online analytical website Alexa 448 is the largest website in the world. It also ranks high in countries with national currencies, representing the largest volume of Bitcoin trading: the US and Japan with 41% and 40% respectively.

CoinMarketCap Alexa ranking
Source: Alexa

Matt Hougan, Bitwise Research Manager, told CoinDesk that the company report would not have a negative impact on the company's bid for Bitcoin ETF approval. In his opinion, the new report actually proves that the true and fundamental cryptographic market is "uniquely resistant to manipulation".

"The fact is that the fact that the crypto market is fake is not news. We are only the first company that we know to be a truly comprehensive approach to demonstration and quantification. In addition, the regulated CME futures market is much more important than most thoughts, as the denominator is wrong. "

By the end of the month SEC has to accept, reject or extend its review of Bitcoin ETF from Bitwise.

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