Fake trading volumes reports comes with a mixed feeling in the crypto sphere. A recent research report published by Bitwise Asset Management has taken a look into account data from 97 crypto exchanges to trace the sequence of trade volumes. The report detailed that most of the crypto exchange platforms were providing faked volume to the listing website – some 87% of them to be precise (Note that the report was focused on bitcoin only). The report was submitted to the United States Securities and Exchange Commission and it stated that almost 95 percent of volume on unregulated exchanges appears to be fake or non-economic in nature.
Using observable data from reputable exchanges like Coinbase and Kraken as a baseline, the report recorded traded volume against the number of exchange visitors, showing that 59 percent of reported volumes were more than 10 times higher than would be expected: “If each exchange averaged the volume per visit of CoinbasePro, Gemini, Poloniex, Binance, and Kraken” tweeted TIE, “we would expect the real trading volume among the largest 100 exchanges to equal $2.1B per day. Currently that number is being reported as $15.9B.”
Changpeng Zhao, popularly known in the industry as CZ, said that the reports — most recently from Bitwise Asset Management and The TIE— on exchanges widely faking volumes will end up making the whole industry more transparent. The said research report has claimed that 87% of reported cryptocurrency exchange daily trading volume could be fake.
As contained in the TIE tweets “We started by pulling a list of the top 100 exchanges by reported trading volume over the last 30 days.We then used Similar Web website viewership metrics to calculate the estimated 30 day traffic to each exchange’s website. After doing this, we divided reported volume for each exchange by the # of monthly website visits to determine the reported volume per visit.”
However, CZ has added that contrary to the belief that CoinMarketCap is not to blame, the popular listing website had absolutely nothing to do with the situation:
“It’s not so much Coinmarketcap’s fault, everyone tried to blame on them [sic]. But CoinMarketCap has a very simple reporting mechanism where every exchange reports their own data to them, and they just show it.”
CZ made it clear that Binance will not be lured into starting a Twitter war with CoinMarketCap which he said was “kind of childish.” However, he said that the exchange is presently working with CoinMarketCap to find a solution to the problem. He equally said that delisting an exchange found faking volumes could serve as punishment and in turn contribute to mitigating the issue.
$36.7 Million Worth of BNB Destroyed as Binance Completes its 9th Quarterly Burn
Binance has announced the completion of its ninths quarterly burn of the BNB token. The period which is between July to September, 2019 say the burning of 2,061,888 BNB tokens worth at market value $36,700,000.
CZ, CEO of Binance in a statement made in the exchange’s blog said he will share some thoughts using the opportunity provided by the quarterly burn.
According to CZ, the last quarter burn represents a significant growth over the 2nd quarter burn. Contributing factors to the increase include new services such as the Margin Trading platform amongst other services which CZ noted are beginning to produce results.
For Q4, CZ acknowledged that services such as the Futures Trading will contribute to the Q4 burning.
Binance also mentioned that though the exchange has large user base, it could still be making the small profit compared to other exchanges in the industry.
He gave reasons for this position, one which be said it’s because of Binance long term goals to fund and invest in projects that has prospects. He also cited lowest fees in the industry as a reason.
CZ pointed out that Binance does not perform a “buy back” as some people think it’s better. He went further clarifying this position saying
” …..think about it: a platform’s main income should already be in their native platform token, and the only way to get the “cash” to do a “buy-back” is to sell their tokens first. So, to do a “buy-back,” they must sell first, then buy back. –– We believe this does not, in fact, achieve anything; it only indicates that those platforms are not holding their own tokens. They probably sell their tokens the minute they receive them.”
He concluded with a question “Would you want to hold their tokens when the platforms don’t hold it themselves?”
According to Binance, following the burn, there are still 185,474,825 BNB remaining
Kubitx Exchange now listed on Coinmarketcap
Cryptocurrency exchange Kubitx has now been listed on cryptocurrency market data aggregator, coinmarketcap.
The data aggregator has only added few information on the exchange. There is currently no data showing assets tradable on the exchange, the trading volume has also not been added.
As a new addition, the only information available on the cryptocurrency market aggregator for Kubitx are the URL to the; website, to the official Telegram group, to the Medium account and to the Twitter social media account.
In addition to the links, coinmarketcap also added a description of the exchange.
“Launched on 20/12/2018, KuBitX Exchange is a centralized exchange based in Seychelles and Malta. It supports OTC/IEO. It is reportedly connected to African payment gateways.”
KubitX is a digital asset marketplace designed to be elegant, advanced, fast and secure for trading digital assets. It has its native token, the KBX.
It’s also has the KBX Payments Remittances & OTC Wallet (PROW) which lets users earn passive income on every spending they or their referrals make. It also enables users to enjoy discount when payment is made with the KBX token.
Earlier this year, in the month of May, KubitX revealed it had attracted seed investments, thought it didn’t reveal the investors, KubitX mentioned it was “some” operational funding.
In September, after the seed investment, KubitX unveiled its ambassadorship program which commenced operations on the 10th of the month. The program lets what it called “foot soldiers” to market the project to the African continent showing people what they can do with the KBX.
Binance Launches Ninth Phase of Binance Lending
Leading cryptocurrency exchange Binance has launched the ninth phase of its lending product.
The ninth phase which is scheduled to commence from the 16th day of October, 2019 will carry a 14-day fixed term with six lending products offered.
Like previous phases, subscription for this ninth phase will be a first come first served basis. Subscription is expected to commence from the 16th of October at 12:00 PM (UTC) to 0:00AM on the 17th.
For the ninth phase, Binance offers six lending products to the public.
The BNB Lending product carries a total subscription cap of 1, 000,000 BNB with individual cap set at 5,000 BNB at an interest rate of 6%.
Bitcoin BTC Lending product carries a subscription cap of 1,000 BTC with individual cap set at 20 BTC generating interest rate of 3%.
BUSD and USDT has a total subscription cap of 10,000,000 and individual cap of 1,000,000. However, interest rates are 10% and 6% respectively.
ETH Lending products offers total subscription cap of 10,000 ETH at 6% interest rate with personal subscription cap set at 1 ETH.
MATIC Lending product bears a 6% interest rate with 20,000,000 and 200,000 total and individual subscription cap.
CZ, CEO of Binance has revealed that funds received from lenders are used by Margin traders while the interest paid to lenders are obtained from fees paid by traders on its margin trading platform.
Interest calculations begins from the commencement of the subscription period to the 30th of October, 2019 at 12:00 PM (UTC).
Payment of interest is immediately after loan term matures.
Binance revealed that the BNB balanced committed into Lending products will be included in each user’s daily BNB balance calculations for Binance Launchpad and other daily calculations.
Tokyo-based Cryptocurrency Exchange Adds 5 New Altcoins to Its Europe and US Platforms
Bitflyer, a Japanese cryptocurrency exchange based in Tokyo made this announcement very recently. It recently announced the addition of new cryptocurrency offerings on its trading platforms. The five new altcoins will be added to its Europe and Us platforms. The European platform will have access to: Bitcoin Cash (BCH), Ethereum Classic (ETC), Litecoin (LTC), Lisk (LSK) and Monacoin (MONA). The US customers will have immediate access to three of these coins: BCH, ETC and LTC.
Bitcoin anticipates that by adding these new Altcoins, it is expanding its buy/sell offer. This will, therefore, give its customers instant access to some of the largest altcoins in the world. These coins have already been made available to its Japanese customers. The firm admits that the response from its Japanese customers was tremendous. This is possibly a motivation for the extension of two of its most significant customer bases- US and Europe. With Bitflyer’s experience in Japan, it believes it can offer the same to its European and US customers. Its standards of simplicity, efficiency and transparency to current Bitcoin and Ethereum traders would be maintained.
Bitcoin has made efforts to upgrade its products and services. It joined forces with Tpoint Japan last month to launch a Tpoint program. This program enables users to acquire T-point rewards while making Bitcoin purchases. The T-points acquired can then be used to earn Bitcoin.
Bitflyer partnered with Sumitomo Corporation in July to transform the real estate industry in Japan. With this project, the rental customers can complete a house renting process using their smartphones. The Miyabi blockchain which is driven by smart contracts will bring about a revolution in the country’s rental processes. Thus, reducing time and administrative costs incurred in handling such issues. It is obvious that Bitflyer is out to provide service upgrades to its customers this year.
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