Fraudulent Exchange Data in Crypto Misleads the Public

For the last couple of years, many exchanges have entered the crypto world and want to make a name for themselves alongside the old more established names. The buzz and excitement created when BTC hit the all-time-high with ETH posting massive returns made people from all over the world interested in crypto. Similar to the California Gold Rush, but word traveled much faster via the internet. Now with so many people in the space, it is a little like the old expression “squeeze blood out of a turnip”. The competition is cutthroat and everyone is similar so there needs to be a way to separate themselves from the bunch. The solution to this is, make up some numbers! If an exchange can report $10 million in daily trading volume, maybe someone with a couple million would want to sell there, making the exchange some money in fees. If there is not a large amount of trading volume, why would anyone bother? That is the current situation many exchanges are in, they fundamentally sell and buy from themselves to increase the volume. No new money is entering the system, it is all misinformation to lure outside money into their platform or deceive investors looking at historical data on websites like CMC or CoinGecko. Crypto exchanges want to make money in fees so they need outside money. Without it, the cash flow dries up and the exchange will have a hard time fighting with the whales in the industry. Not only do exchanges operate in their own self-interest to fake the data, but tokens/coins also do this on their own! In the past, I don’t know about today, to be listed on CMC you needed to have sustained volume of a thousand dollars every day. Small micro-cap coins do not have this kind of volume thus have had a hard time being listed. What is the solution? Go on an exchange and make up the data for daily volume by buying/selling from yourself. Boom, problem solved you have just got on CMC! These details are not known to the average investor in crypto or newcomer so my suggestion is always to check the data. If something looks fishy, smells fishy, it probably is fishy. An example of this would be a centralized exchange posting $1,000,000 volume on the day when no other exchange is even close on a multiple and there doesn’t exist liquidity to substantiate the volume on the $1,000,000 exchange. This is an example of propaganda and misinformation to lie to the people. Hope this article helps one person see through the garbage; the opportunity is boundless in crypto and the fake data that comes with it is a reality we all have to see clearly. 1+1=2. I am no financial advisor, this is all opinion and I do have a stake in BSOV.

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