Chinese Exchange Houbi Reaches 10MILLION BTC Weekly Volume - Obviously Fake, Right?

[bitcoinmarkets]

web version: http://www.bitcoinfuturesguide.com/bitc ... is-it-real

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This seems really strange: Houbi has reached all-time high volume. Weekly volume has reached 10 Million Bitcoins. Remember: Chinese exchanges have a 0% fee model http://www.bitcoinfuturesguide.com/bitc ... adow-banks , which enables interesting trading behavior.

To compare, this is what OKCoin weekly volume looks like:

And this is what BTCC (BTCChina) looks like, note the reverse trend of their Chinese competitors OKCoin/Houbi:

And now compare with the USD exchanges, here's Bitfinex's weekly chart with volume:

Looks a bit more normal.

Now let's look at BitStamp, who has been suspected of volume faking also http://www.bitcoinfuturesguide.com/bitc ... n-bitstamp:

So it seems like Houbi's 10 million coin weekly volume is a bit suspicious in the context of how the rest of the exchanges are doing. But maybe they just have some special customers and are doing really well? Who knows.

[BitcoinXio]

Yeah, Bobby Lee from [BTCC] has been saying for a long time that Huobi and OKCoin both do wash trades, faking volume. Not too surprised here.

Here is a recent interview with Bobby:

http://www.ibtimes.co.uk/btcc-chief-bob ... on-1525964

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.