New research presented to the SEC by Bitwise Asset Management claims 95% of reported BTC spot volume is fake. According to Bitwise, only 10 exchanges have actual volume… but it’s not all bad news for the bitcoin market.
Claims of wash trading and fake volumes are nothing new. Groups like the Blockchain Transparency Institute have been publishing ever more detailed reports on the issue. But the suggestion that 95% of the volume is fake marks a new high (or low) point. The main reason for an exchange to fake volume is to inflate the listing fees it can charge.