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Wash trade in cryptomarkets — a case of BW exchange

Cryptomarkets are notorious for wash trading — we’ve analysed one of the top-10 exchanges to detect that 95% of volume is artificial. We have estimated which part of the reported volume is fake and generated by the fraudulent exchanges that aim at ranking higher by volume, attracting new customers and charging high listing fees by showing non-existent liquidity.


One of the Top-10 exchanges, BW, may serve as a notorious model of an exchange that misleads market participants about its trading volume. Our surveillance algorithm has detected systematic wash trading with the vast majority (up to 100% on some symbols) of trades occurring inside the spread. These trades happen at a midmarket price without having any impact on the order book.


Read more on our Medium blog.


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Smoke and Mirrors: More reports of rampant wash trading detected among large crypto exchanges

  • Crypto Integrity found that up to 88% of reported volumes in February were artificial at some of the highest reported volume exchanges

  • On some less liquid trading pairs, the group estimates up to 100% of the volume is fake

The Block Crypto

ABOUT

Crypto Integrity is a non-commercial project aimed at fraud detection and forensics in the crypto markets.

Our mission is prepare and publish market research to foster transparency and market integrity. We are ready to share with the community the insights into what the raw market data may tell a watchful observer.


We are a team of enthusiasts with the background in finance, algorithmic trading, computer and data science. Based in four different countries in Europe and Asia, the team started its research in August 2017. In February 2019, the hobby has finally taken a shape of the independent project Crypto Integrity.  


Crypto Integrity is building a system that collects, processes and analyses low-level market data (order books and trades) from a number of crypto exchanges. It allows identifying what no one is able to find on charts or by the analysis of trades & volumes. Our codebase as well as methodology is public and accessible in GitHub. We look forward to those who would like to join us and champion transparency in cryptomarkets! 

The infrastructure costs money, and we will be grateful if you could share our burden:

BTC: 1KoTp5TiRFwdLZUs2FreQyrr3599n2VK9Q

ETH: 0x236251B0F405029E1A11411899db56569966cf53

XRP: rHhbJ8yPXcwSTctFiAYocpK3BCHZ6g8eFn

DASH: XsGeFrGn8mDQmoCjQ3YQpmpXBMMm8s2aMh