Fake Volumes & Wash Trades on Exchanges: What should we Believe?

Fake Volumes & Wash Trades on Exchanges: What should we Believe?

Nearly 70% of all cryptocurrency volume displayed on CoinMarketCap is fake. At least, that’s according to the research done by Alameda Research. This is a huge problem for anyone trying to determine what cryptocurrencies are popular and define a strategy based on the market data. While the methodology of estimation may vary, the common principle is the same: researchers exclude the shady exchanges that tend to misreport the volume and leave only the more or less reliable ones, such as Binance or Bittrex.