Certain exchanges fake false trading volumes. Investor fraud can have far-reaching consequences.
Investors and ranking platforms face a Bitcoin loophole problem
Wash trading is the process by which financial products are bought and sold in a short period of time to simulate a high trading volume. A widespread Bitcoin loophole problem that has also taken its place in the crypto currency world: https://www.onlinebetrug.net/en/bitcoin-loophole/ Because when stock exchanges engage in wash trading to falsely pretend liquidity, trust and security, it is primarily at the expense of investors. Investors‘ trust can then cause a lot of damage.
But let’s start all over again. When exchanges do wash trading, it’s like putting all the products in the refrigerator in front so that it looks full, even though everything behind it is empty. It’s pretended that there’s a strong trade in crypto currencies within an exchange platform, with only a few traders running this frame-up buy and sell game.
The reason is simple
Creating and implementing marketing and communication strategies and building a community is more expensive than building with Wash Trading. Because it is a narrow niche that the fake exchanges use there.
The platforms that create the rankings are torn back and forth. If they do not include the stock exchanges in their rankings, regulation will take place. This protects some investors, but undermines their own credibility. After all, who decides under what criteria and from when a stock exchange platform should better not be listed?
However, if the ranking websites decide to include all exchanges in the list based on volume, they can be reproached. This gives the fraudsters a platform that gives them even more reach for their fake business.
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