Blockchain Transparency Institute: Even Binance Is Not Safe from Wash Trading

written by

Support free journalists: > send a tip

A new study from the Blockchain Transparency Institute (BTI) has shown that even large crypto exchanges like Binance are not safe from wash trading practices, unlike as previously claimed by earlier studies.

BTI has apparently spent the last four months fine-tuning a new algorithm designed to identify individual accounts on crypto exchanges that are allegedly involved in wash trading. It now claims that more than 10% of Binance trading is done via wash trading, observed over 30 trading pairs on the exchange, with some even showing signs of as much as 75% wash trading volume.

It’s not all bad, however, as Binance top volume pairs such as BTC and ETH still record 85% to 95% legitimate volume. Despite this almost squeaky clean image, it has been removed as a “verified exchange” by BTI:

“About 88 to 92 percent of daily trading volume is fabricated depending on the day. Bitcoin’s daily trading volume is about 92 percent fabricated. [Among] the top 40 largest exchanges with actual volume, Bitcoin’s volume is about 65 percent fabricated. Almost all of this fabricated volume comes from OKExBiboxHitBTC, and Huobi.”

Wash trading is a term given to a form of fabricated trading to create false of inflated trading volumes at crypto exchanges so as to affect their standings on exchange rankings, which typically use trading volumes to indicate popularity. It involves the creation of two accounts, set up to buy and sell crypto to each other.

Binance CEO Changpeng Zhao has, in the past, accused other exchanges of manipulating their volume statistics to give other traders the impression they have more liquidity and are more used than they really are.

This all stemmed from an even earlier study by crypto trader Sylvain Ribes who traded crypto at several exchanges to see the effects of his own trades on their volume data.


Follow on Twitter: @BitcoinNewsCom

Telegram Alerts from

Want to advertise or get published on – View our Media Kit PDF here.

Image Courtesy: Pixabay

Help spread this article :) is NOT INVESTMENT ADVICE

Opinions expressed are entirely their own and do not necessarily reflect those of

For informational purposes only. Individuals and entities should not construe any information on this site as investment, financial, legal, tax, accounting or other advice. Information provided does not constitute a recommendation or endorsement by to buy or sell bitcoin, cryptocurrencies or other financial instruments. Forecasts are inherently limited and cannot be relied upon. Do your own research and consult a professional advisor. The opinion of authors do not reflect those of 


Read More Bitcoin News


Join our Newsletter


Latest on Bitcoin News

Video of the Week

Join our Newsletter