Decentralization is undoubtedly one of the key tenants within the cryptocurrency community, both with the virtual currencies and the exchanges. However, recent reports point to a manipulation of sorts as these exchanges’ reported volumes do not correspond with their actual figures.
The above was indicated by a Bitwise report which suggested that 95 percent of the trade volume is “fake and/or non-economic” stoking concern within the market. Mati Greenspan, a senior market analyst at eToro, in an exclusive interview with AMBCrypto, suggested that Bitwise’s report which demarcated “real exchange” from “fake exchanges” points to the decentralized nature of the market.
In Greenspan’s opinion, what the Bitwise report indicated was not “not a bad thing”. He added that the variance of “95 percent” could have very easily been 10 percent on the lower side or 99 percent on the higher side. If the game was to fudge numbers, the culprits would push the figure as much as possible and not hold back, in his opinion.
“The 95% isn’t as significant as the number of exchanges that are actually reporting true volumes, and are not doing wash trading. That number is 10, and that is a very good number.”
According to the report, the ten exchanges that report “real volume” are Binance, Bitfinex, Kraken, Bitstamp, Coinbase, bitFlyer, Gemini, itBit, Bittrex, and Poloniex.
Greenspan stated that this exchange variance shows that the Bitcoin trade dominance is spread out, which points to a firm decentralized nature, especially compared to its traditional equivalent the stock market. In his words:
“This actually shows, that the Bitcoin market, is decentralised. In most markets you have one exchange, that’s basically the arbiter, that’s saying what the price is.”
He added that one dominant exchange,