While posting this article, we have 286 exchanges listed on Coinranking. Exchanges are very important to the crypto world; most of the blockchain transactions go from and to these exchanges. However, due to fake volumes reported by exchanges or its users, a big trust issue is created.
Wash what?
When we talk about fake trading, we mean exchanges or coin projects on an exchange trading with themselves to create liquidity. Or better said; the illusion of liquidity. This is called wash trading. So trades do happen, but they are just sent back and forth. Exchanges and coin projects do this for the simple reason to attract and keep users/traders.
Fake volume is the result of wash trading. This is a big problem for anyone trying to make good choices based on that information, and determine what cryptocurrencies are popular. And this comes at a cost to the cryptocurrency ecosystem as a whole.
Blockchain Transparency Institute
The good news is that a certain organization makes blockchain analyses, which help to see which exchanges are most likely faking trade volumes; the Blockchain Transparency Institute. We use this exchange verification to inform you better about real trading volumes of our listed exchanges.
You can recognize the verified exchanges on Coinranking by the words ‘BTI verified’. BTI says: “We will review all exchanges each month and remove those as BTI Verified who do not meet our criteria, as well as add those who do meet these criteria.” To qualify to be listed as a BTI Verified exchange, there must be less than ten percent wash trading on the exchange over thirty days.
Trusted data
Now you’ll be better informed about the exchanges, but we’re also working on basing our whole price calculation on these verified exchanges, soon. We want to assure you to get the most reliable cryptocurrency data.