fbpx

6-Figures Side Hustles: FREE Documentary starts May 23 Review & Bonus + The Future Belongs to Small Businesses – CHALLENGE Question #1

You're Reading:The Truth About Fake Volumes In Cryptocurrency Markets

The Truth About Fake Volumes In Cryptocurrency Markets

by Kelly

}

Jul 11, 2020

LATEST NEWS

6-Figures Side Hustles: FREE Documentary 9 Episodes by Revealed Films, starts May 23

Review & Exclusive Bonus

FREE Report: 3 AI Side Hustles Anyone Can Start

........................

6-Figures Side Hustles: FREE Documentary 9 Episodes by Revealed Films, starts May 23

TRAILER #1

........................

6-Figures Side Hustles: FREE Documentary 9 Episodes by Revealed Films, starts May 23

TRAILER #2

........................

6-Figures Side Hustles: FREE Documentary 9 Episodes by Revealed Films, starts May 23

TRAILER #3

........................

The Future Belongs to Small Businesses

CHALLENGE: Preliminary Phase STARTED - 3 WINNERS. Question #1 has been released.

........................

“7 IDEALS” Methodology Overview & Invitation

HOT NEWS: I'm working on the "7 IDEALS METHODOLOGY" video presentation, the blueprint (infographic & guide), the 7 ideals page, and a brand-new contest. For more information, join the newsletter and get exclusive bonuses and discounts for a lifetime.

Overview & Invitation

This methodology is the end result of over 30 years in business and marketing and I'm working on it since late 2021.

A systematic and structured approach to developing and implementing proprietary and custom-made strategies, processes, and campaigns for small businesses and startups.

It’s a methodology specifically designed to help you compete efficiently in the overcomplicated marketplace.

It’s a proprietary system that looks at your business as a whole and gives you a clear path – a roadmap to follow – a solid and flexible strategy and action plan.

It involves a set of principles, processes, models, frameworks, tactics, and techniques that you can use to achieve and surpass your business goals and objectives.

It’s not just a methodology to promote your products and services, that’s only one tiny aspect. It’s a methodology that helps you design, run, manage, and grow businesses. From an initial idea to becoming a leading name in your respective industry and beyond.

Starting small is actually the biggest benefit in this multi-dimensional, fast-changing marketplace.

Small businesses are personal, we get to interact with our customers face-to-face, and serve them at the highest level possible.

We know we can’t compete with giant corporations on budget, resources, or technology, but when it comes to delivering user experiences… guess… who’s the boss!

It’s a carefully designed, strategically organized methodology that helps small business owners understand the market inside out, create a competitive advantage, and develop unmatched – innovative products that consumers can’t enjoy and recommend enough.

STAY TUNED!

Overview & Invitation

........................

DAILY BREAKING NEWS - Marketing, Business, Economy, Multimedia + Last video commentary + Latest Additions + The "7 Ideals" Methodology NEWS & UPDATES

WealthyAffiliate - Why Does Everyone Want to be an Influencer? (most make no money) VIDEO:

I know we tend to look up to those that we view as public figures, and that is the case with influencers now on social media. There is a problem though. We perceive these folks through a much different lens than who they actually are, and we also perceive these folks with "followings" to be much more successful than they are.

SquadHelp: World's #1 Naming Platform - Domain names ideas generator + Business name generator + Industry name ideas + Trademark checker + Branding blog + Startup toolkit + Contests + Huge collections of brandable names + Resources, tools, and creatives, and so much more OVERVIEW

Online Marketplaces: Latest Additions

  • Restock.gr: Dairy & Cheese, Fruits vegetables, Meat, Fish Seafood, Delicatessen, Pasta & Deli, Grocery
    Cellar, Nuts & Dried fruits, Personal hygiene & Cosmetics, Cleaners, Stationery & Home Goods, Disposable items, Space equipment, Tools & Crafts

........................

Some of those advertisements are sponsored. For more information, I refer you to the Disclaimer page

Roober-May-2023-728x90

Sponsored Ad

In the past 3 years, the landscape of crypto has changed drastically. Thousands of new cryptocurrencies as well as exchanges are now part of the ever-growing industry that doesn’t seem to be slowing down.

If you were part of the industry just a few years back, you may remember that only a handful of exchanges were trustworthy options. Those platforms took the largest share of the trading volumes and were considered safe for the public to use.

Today, more than 300 exchanges are fighting for the top spots of CoinMarketCap (CMC) and many more are yet to be “officially” recognized.

With the growth of exchange platforms, what also seems to be growing are the daily reported trading volumes. Almost 100 of the previous exchanges are reporting daily trading volumes that exceed $50 million dollars. And from those, almost half are responsible for numbers larger than $1 billion.

One could argue that mainstream adoption has increased trading volumes massively. Others seem skeptical.

How can some exchanges trade more than a billion dollars per day when their Social Media channels are quiet and barely have any followers?

Fake Volumes In Cryptocurrency Markets

Bitwise findings

It was not until 2019 that Bitwise, an asset management group, performed in-depth research into the matter. In their report, which was presented to the U.S. Securities and Exchange Commission, they clearly outline the problem of inflated (fake) volumes in cryptocurrency exchanges.

That’s right. Apparently, the majority of exchanges are reporting artificially inflated trading volumes. The actual discrepancy is so high that only about 5% of reported volumes is matching the actual volumes of the platforms.

To make the findings easier to understand, Paybis prepared an infographic that shows how the data was collected and which platforms report truthful volumes.

Fake Volume Infographic. Paybis v2

Why do exchanges report artificially inflated volumes?

The report of Bitwise further analyses the findings to point out the reasons and motivations that lead to these unethical actions. More specifically, there are two reasons they emphasize on:

  • Increased popularity – Exchanges that are listed on the top of CoinMarketCap’s exchange list receive more attention from the media and from new investors. This increases the platforms’ authority and makes them more popular in the crypto space.
  • Growth in revenue – Popular cryptocurrency exchanges can charge higher listing fees for new coins, ICO’s, IEO’s, and other altcoins. The higher trading volume is an indicator of high liquidity which is helpful for new coins that need traction at their initial stages.
Roober-May 2023-250x250

Sponsored Ad

Short-term solution

After Bitwise’s report caused an uproar in the industry, CMC’s Carylyne Chan verified and decided to work on the issue at hand. A few weeks after the findings, the platform introduced a new metric to help investors get a better understanding of the reliability of exchange platforms.

The liquidity metric allowed investors to filter different exchanges based on their actual liquidity instead of their reported trading volumes.

Over time, the “bearish” findings turned out to be the perfect fuel for further growth of the industry.

Binance acquisition

Earlier this year, rumors surrounding a potential acquisition started taking place. According to the sources, Binance was in discussion with CoinMarketCap, to potentially unite their powers in the name of progress.

A short while later, the news was announced – Binance acquired CMC for an undisclosed amount.

As soon as the deal was completed, an internal restructure followed. Brandon Chez, CMC’s founder, stepped down from his role as CEO and was replaced by former Chief Strategy Officer Carylyne Chan. The rest of the team (40) continues to work under the umbrella of Binance.

Binance’s founder, Changpeng Zhao, elaborated on the deal mentioning that both entities will continue to operate independently and that the acquisition would have no effect on Binance’s popularity in the platform.

But here’s where it gets interesting. As soon as Binance acquired CMC, the exchange list changed completely.

top cryptocurrency exchanges

The platform introduced a new metric – the Web Traffic Factor. This metric is a combination of several social metrics to further illustrate the power of the platforms’ digital presence.

Rankings are now made based on both the web-traffic factor and all the other listed metrics. The only platform with a perfect score of 1000 is Binance.

This score may seem kind of unfair due to the acquisition. However, Binance is by all accounts the most popular exchange at the time of this writing.

A look into the future

As Bitcoin and other cryptocurrencies enter once again into the spotlight of mainstream media, the average investor is now smarter and more educated than before.

This, in turn, means that it will be much harder for exchange platforms to gain the trust of the public. Investors will now judge platforms and coins based on past events, and become much more critical and realistic in their decision-making process.

Unethical exchanges and irrelevant cryptocurrencies will slowly perish and be replaced by better, more transparent solutions. And with the improved data metrics of CoinMarketCap, it will be a lot easier to research and discover trustworthy platforms and promising cryptocurrencies.

While Bitcoin and other cryptocurrencies are still in their early stages of development, we have already witnessed major progress towards a more transparent and regulated market.

And we expect this trend to keep on growing.

Final thoughts

So, whether you want to buy or sell Bitcoin, make sure you choose an exchange that is reliable and only presents accurate trading volumes. By doing so, you help the industry reward the companies that are building towards a more decentralized future and not just more profit.

We hope you enjoyed this article. If any questions remain, feel free to leave a comment and let us know your thoughts.

Kelly

Kelly

Cryptocurrency Journalist

Kelly is a Latvia-based cryptocurrency journalist with a passion for covering the latest happenings in the cryptocurrency and tech world. In addition to being the analytics specialist of Paybis, Kelly is also into consulting, reading, and investigative journalism.

Entrepreneurship

6-figure side hustles documentary by revealed films
the future belongs to small businesses challenge
6-figure Side Hustles - AI Free Report Cover
marketing publishing mastery private training workshops featured banner
Roober-May 2023-250x250
wealthy-affiliate
Divi WordPress Theme

Archives

Find a domain starting at $0.88

powered by Namecheap

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Newsletter

Marketing, Business, Economy, Multimedia

Get access to marketing and business training, sales secrets and personal stories from the entrepreneurial world, downloads, exclusive discounts and bonuses, and the newsletter to scale your business

I’m celebrating the release of the “7 Ideals” methodology, be part of the movement!

The “7 Ideals” Methodology Beta Group & CONTEST

There’s a contest as the time for the opening has almost come. Submit your product/service for review and get the chance to win a phenomenal prize. The winner gets free access to the whole methodology – not just access to the beta group. DETAILS SOON 🙂

Only 1 brand will be rewarded

Read More

Latest Posts

the future belongs to small businesses challenge

REAL CHALLENGE

 

A week-long event to help you navigate through these tough economic times and become competent in an ever-changing marketplace by understanding and elaborating on your unique advantages as a small business or startup.

 

FREE to participate but there are certain criteria in order to qualify for the final stage of the event. Right now, we are in the preliminary phase. 

3 WINNERS get access to the "7 IDEALS" methodology

You have Successfully Subscribed!

Pin It on Pinterest

Share This