Crypto platforms with 70% total reported volume of wash trading moved up by 46 positions in rankings.
It’s no secret that wash trading continues to plague the crypto market. A paper titled “Crypto Wash Trading,” published by the National Bureau of Economic Research , found that an overwhelming number of unregulated crypto exchanges account for a sizeable portion of wash trades.29 major exchanges, such as Binance, Coinbase, and Huobi, as well as lesser-known exchanges from a period of July 9th to November 3rd, 2019.
It was found that wash trades accounted for as high as 77.5% of the total trading volume on unregulated exchanges, with a median of 79.1%. Meanwhile, wash trades on the twelve Tier-2 exchanges were observed to be more than 80% of the total trade volume, “which is still over 70% after accounting for observable exchange heterogeneity.”“Our first key finding is that wash trading broadly exists on unregulated exchanges but is absent on regulated exchanges,” they wrote.