Apart from ripple, other top coins plagued by fake volumes group:
- Litecoin – $106 million real volume versus $2.9 billion reported
- EOS – $121 million real book versus $2.9 billion reported
- Bitcoin Cash – $146 million real volume versus $1.6 billion reported
The genuine winner from the fake volume purge? Bitcoin, whose share of overall crypto trading volume balloons to 48% from 29% after distance the suspicious data.
Why Accurate Bitcoin Exchange Reporting Matters
OpenMarketCap is a product of DIRT Protocol, whose architect – Yin Wu – published a blog post outlining why so many crypto exchanges report fake volumes to deceive their purchasers.
“Exchanges are incentivized to report false numbers to climb price tracker listings (and thus be featured more prominently to alcohols.”
OpenMarketCap is a new crypto tracker that calculates price and volume using data from the 10 trusted interchanges on the @BitwiseInvest report.
A 95% drop in trading volume means the market for most alts is extremely illiquid / imaginary: https://t.co/J6yLb5VxAx
— Yin Yin Wu (@yinyinwu) March 26, 2019
Speaking to CCN, Yin Wu said that it is important for users in crypto to have a say in what information they trust and use. This is perfectly aligned with the ethos of the crypto ecosystem in general. That’s why the platform countenances users to have a say in what exchanges can feed data into OpenMarketCap.
Hearkening back to the Token Curated Registry (TCR) present, users who want to challenge the reliability of a particular bitcoin exchange must put skin in the game by staking tokens.
Excepting from the challenge of ensuring that users have an incentive to vote correctly, Yin said that a major restraint towards building a reliable TCR is curating evidence. Users must have access to trustworthy data, or else it won’t meaning if they place skin in the game or not.