Fake volume in crypto markets is not something new but it seems that numbers have gone literally crazy the last months. Crypto analyst Mati Greenspan has pointed in a tweet today to the USDT crazy trading volume.
I think this wash trading thing is getting a bit out of hand @CoinMarketCap.Airdrop: Morpher is Giving Away 30 USD to Launch their Trading Platform.
The project aims to build a trading platform and is supported, among others by billionaire VC fund Tim Draper.
Reported 24-hour volume of Tether is nearly 5 times the total market cap.
If we believe these numbers, 30% of all BCH in circulation has traded today, 66% of all EOS, and 93% of all Litecoin. pic.twitter.com/BbpQIYGjg2
— Mati Greenspan [not trading advice] (@MatiGreenspan) December 2, 2019
In the last months, the daily trading volume surged in USDT averaging between $30 billion daily and going up to $58 billion on October 26th. Compared to the $4 billion total market cap, Tether daily trading volume is up to 15 times bigger, which takes wash trading to another superior level.
Since we talked about the Bitwise report and the 95% fake volume earlier this year the wash trading seems to have grown even more. Mostly the fake trading volume comes from exchanges nobody uses but they report billions in daily trading volume.
Fake trading volume is mainly generated from exchanges that want to attract costumers showing fake liquidity but this also serves to cover the “futures markets manipulation” saying that volume on the futures markets is small compared to the total crypto trading volume, which is not true if most of the volume is fake.
Coinmarketcap has made efforts to clean the space from manipulated data but numbers have gone even crazier.
Another fact that supports the idea of massive wash trading and data manipulation is that only 6.5 million bitcoins from the 18.08 million circulating supply have changed hands in the last 12 months showing a strong commitment from the holders as Crypto analyst @Rhythmtrader points in his tweet.
11,580,00 bitcoin have not moved in over a year.
Even with a 85% increase in price during that time, those millions of bitcoin were not sold or traded.
Hodlers of last resort are insane. pic.twitter.com/KTpeDrLlOO
— Rhythm (@Rhythmtrader) December 1, 2019
Crypto markets might be the most manipulated trading assets yet this high scale market manipulation and attempt to shake the bitcoin holders seems not to be working that good for the manipulators.
Despite the fact that bitcoin value nearly doubled compared to one year ago, 11.5 million bitcoins remain untouched in the last 12 months. This might mean that people are aware of the market manipulation and orchestrated pumps and dumps doesn’t matter for them, or maybe holders just consider their bitcoin holdings a long term investment.
Meanwhile, the crypto space attracts more scammers and manipulators the community evolves becoming more immune to the market parasites.