The Hong Kong trading platform OKEx, which is in the TOP-10 cryptobirth in terms of daily trading volume, admitted that there was an artificial overestimation of data on trading on the stock exchange. At the same time, the management of the exchange does not see its fault in what is happening and promises to fight fake volumes.
In a conversation with one of the thematic cryptocurrency publications, OKEx Director for Financial Markets Lenniks Lai noted that the company agreed with Bitwise Asset Management analysts, who published a report that 95% of trading volumes on unregulated exchanges are fake. Lai acknowledged that OKEx is practicing a price manipulation scheme at the cryptorney wash trading, which creates visible activity and contributes to artificially overestimation of trading volumes and prices.
“OKEx has a lot of suspicious trading activity. We are working to prevent this, ”said Lenniks Lai.
At the same time, the representative of OKEx assured that the management of the exchange is not engaged in trade in order to overstate the volume of transactions. The main reason for the fake data is the behavior of the market, namely those of its participants who are trying to cheat when trading digital coins in order to get more favorable conditions for commissions. For example, by making a large number of transactions in illiquid pairs, some traders easily wind up the level of their accounts on the stock exchange, and then take advantage of reduced commissions.
Such behavior of players is promoted by the eight-level OKEx commission structure, in which traders, whose total monthly trading volume in the hundreds and thousands of bitcoins, have great advantages. Therefore, users of the exchange have all the conditions for intentionally “pumping up” the number of transactions.