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Reminder: Chinese bitcoin spot exchanges OKCoin and Huobi are faking a majority of their trading volume

Mon Mar 28, 2016 6:19 pm

may be easier to read web version: http://www.bitcoinfuturesguide.com/bitc ... ing-volume


Image

To most traders it is common knowledge that Chinese exchanges fake their volume, whether it's OkCoin and Huobi's spot or futures exchanges. Here's an example from Huobi to demonstate the absurdity of the fraud they are committing:

Image

On the 1-day candles you see the volume at over 2.2 Million BTC being traded on Huobi.

And here's the same chart for OKCoin:

Image

Oh no! Only 2 million BTC daily volume on OKCoin. They lose the fake volume competition with Huobi :( Shame to their family.

Raise your hand if you think OKcoin and Huobi are really trading 4.5 Million bitcoin per day, almost 1/3 of the current supply:

Image

So we don't even need any more information than this to know that they are committing fraud in their trading volume. Taking 1,000 BTC and trading it between two exchange accounts at 0% fees and reporting it like it's a normal transaction would be a criminal offence in any regulated environment.

If that wasn't enough though, we have its own competitors blowing the whistle on them, in an ignored interview the CEO Bobby Lee did, he clearly calls them out for this practice:
There is a lot of mining that goes on in China. However, I caution you: do not read too much into the high trading volumes. China has decent high volumes but unfortunately two of my competition exchanges - I never like saying this - but they are artificially inflating their volumes through the technique of wash trades.
Okcoin and Huobi are known for inflating trading volumes artificially, basically selling from left hand to the right hand.
They use it for bragging purposes. They try to outdo each other. It's not regulated yet so they don't get slapped on the wrist for doing that. China does have big trading but we are not talking about orders of magnitude higher. If you were to believe the numbers you would think the world is 95% Chinese.
The two largest exchanges in bitcoin, OKcoin and Huobi, are lying about how much trading volume they really do. This should be a scandal, but it's par for the course in bitcoinland. Pressure should always be put on exchanges to be honest and transprent, but people should focus on what the real problems are when our "market leaders" are up to no good like this.

OKCoin's ex CTO "CZ" also blew the whistle on their fraudulent trading volume data:
Fake Volumes
I can confirm some of the above bots are designed to pump up volumes. During certain periods, these bots have also been used in a manner to create orders that will only trade against themselves, not with user orders. This mode of operations was strongly resisted by even Chen and Liu (programming, matching engine), but Star Xu insisted on executing it.
Take this as a public service announcement: do not trust OKCoin or Huobi Chinese bitcoin exchange volume, it's mostly fake and is not an indication of anything but how desperate they are to create an appearance of dominance in the market. This is beyond mere speculation, as it has been confirmed by C level executives and top players in the business.
Image
Visit http://www.bitcoinfuturesguide.com The Bitcoin Futures Guide for beginners to experienced traders.

iFixBTCmemoryIssues
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Re: Reminder: Chinese bitcoin spot exchanges OKCoin and Huobi are faking a majority of their trading volume

Mon Mar 28, 2016 9:21 pm

may be easier to read web version: http://www.bitcoinfuturesguide.com/bitc ... ing-volume


Image

To most traders it is common knowledge that Chinese exchanges fake their volume, whether it's OkCoin and Huobi's spot or futures exchanges. Here's an example from Huobi to demonstate the absurdity of the fraud they are committing:

Image

On the 1-day candles you see the volume at over 2.2 Million BTC being traded on Huobi.

And here's the same chart for OKCoin:

Image

Oh no! Only 2 million BTC daily volume on OKCoin. They lose the fake volume competition with Huobi :( Shame to their family.

Raise your hand if you think OKcoin and Huobi are really trading 4.5 Million bitcoin per day, almost 1/3 of the current supply:

Image

So we don't even need any more information than this to know that they are committing fraud in their trading volume. Taking 1,000 BTC and trading it between two exchange accounts at 0% fees and reporting it like it's a normal transaction would be a criminal offence in any regulated environment.

If that wasn't enough though, we have its own competitors blowing the whistle on them, in an ignored interview the CEO Bobby Lee did, he clearly calls them out for this practice:
There is a lot of mining that goes on in China. However, I caution you: do not read too much into the high trading volumes. China has decent high volumes but unfortunately two of my competition exchanges - I never like saying this - but they are artificially inflating their volumes through the technique of wash trades.
Okcoin and Huobi are known for inflating trading volumes artificially, basically selling from left hand to the right hand.
They use it for bragging purposes. They try to outdo each other. It's not regulated yet so they don't get slapped on the wrist for doing that. China does have big trading but we are not talking about orders of magnitude higher. If you were to believe the numbers you would think the world is 95% Chinese.
The two largest exchanges in bitcoin, OKcoin and Huobi, are lying about how much trading volume they really do. This should be a scandal, but it's par for the course in bitcoinland. Pressure should always be put on exchanges to be honest and transprent, but people should focus on what the real problems are when our "market leaders" are up to no good like this.

OKCoin's ex CTO "CZ" also blew the whistle on their fraudulent trading volume data:
Fake Volumes
I can confirm some of the above bots are designed to pump up volumes. During certain periods, these bots have also been used in a manner to create orders that will only trade against themselves, not with user orders. This mode of operations was strongly resisted by even Chen and Liu (programming, matching engine), but Star Xu insisted on executing it.
Take this as a public service announcement: do not trust OKCoin or Huobi Chinese bitcoin exchange volume, it's mostly fake and is not an indication of anything but how desperate they are to create an appearance of dominance in the market. This is beyond mere speculation, as it has been confirmed by C level executives and top players in the business.
Complain to Chinese securities regulators. Eventually, they will deal with it because it is deprecating the value of the yuan. You know how it works in China, knock-knock and you are never seen again ;)

Bitcoin needs more lawyers!!!!!!!!!!!!!
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Re: Reminder: Chinese bitcoin spot exchanges OKCoin and Huobi are faking a majority of their trading volume

Tue Jun 14, 2016 10:07 pm

''knock knock and you are never seen again'' - congratz, you just showed me how ignorant you are and completely discredited urself as a reliable source. i think you are confusing the Chinese with Uncle Sam 's 1984 police state where cops are listening to everything you do, even ur pacemaker are being spied on. i've lived many years in China and the cops are actually far more lenient and relax than any US cops, Chinese government has barely any oversight on what the citizens are doing, and certainly there are no no fear for the IRS in China, unlike in the US and EUSSR, and im not not even mentioning all the black illegal torture prisons US has in Romania, Poland, Saudi Arabia, north africa....ect. i think everyone by now knows not to trust the brainwashing MSM propaganda to believe the cliches you are trying to keep alive.

iFixBTCmemoryIssues
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Re: Reminder: Chinese bitcoin spot exchanges OKCoin and Huobi are faking a majority of their trading volume

Tue Jun 14, 2016 10:32 pm

''knock knock and you are never seen again'' - congratz, you just showed me how ignorant you are and completely discredited urself as a reliable source. i think you are confusing the Chinese with Uncle Sam 's 1984 police state where cops are listening to everything you do, even ur pacemaker are being spied on. i've lived many years in China and the cops are actually far more lenient and relax than any US cops, Chinese government has barely any oversight on what the citizens are doing, and certainly there are no no fear for the IRS in China, unlike in the US and EUSSR, and im not not even mentioning all the black illegal torture prisons US has in Romania, Poland, Saudi Arabia, north africa....ect. i think everyone by now knows not to trust the brainwashing MSM propaganda to believe the cliches you are trying to keep alive.
Doesn't China execute its citizens for white-collar crime?
Image

If you are running a version of Bitcoin Core, stop using it. Upgrade to Bitcoin Unlimited or Classic immediately.

Fix Your Unconfirmed Transaction.

Vote for the future of our Bitcoin network!

CryptoChartIndex
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Re: Reminder: Chinese bitcoin spot exchanges OKCoin and Huobi are faking a majority of their trading volume

Thu Jun 07, 2018 10:20 am

Okcoin Exchange is now listed on CryptoChartIndex , Now you can get all information regarding Okcoin Exchange on CryptoChartIndex!

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FXTradingPro
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Re: Reminder: Chinese bitcoin spot exchanges OKCoin and Huobi are faking a majority of their trading volume

Mon Aug 06, 2018 3:10 pm

Fake Volumes
I can confirm some of the above bots are designed to pump up volumes. During certain periods, these bots have also been used in a manner to create orders that will only trade against themselves, not with user orders. This mode of operations was strongly resisted by even Chen and Liu (programming, matching engine), but Star Xu insisted on executing it.
Take this as a public service announcement: do not trust OKCoin or Huobi Chinese bitcoin exchange volume, it's mostly fake and is not an indication of anything but how desperate they are to create an appearance of dominance in the market. This is beyond mere speculation, as it has been confirmed by C level executives and top players in the business.
[/quote]


This was really disturbing. If you are running an exchange the data you provide to the public is critical for adoption. You can't just fake it till you make it with an exchange. This could be a big setback for crypto exchanges.
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