Following a recent report by Bitwise Asset Management claiming that 95 percent of Bitcoin exchange trading volume listed on CoinMarketCap is fake, the popular market data aggregator confirmed the concerns as “valid.”
Data Inaccuracy on CoinMarketCap “Valid”
CoinMarketCap is perhaps the most popular cryptocurrency market data aggregator. Having an Alexa rank of 493, it’s a place that a lot of people in the industry turn to for discovering prices, industry rankings, and exchange volumes.
In a 226-slide presentation filed with the US Securities and Exchange Commission, associated with Bitwise’s Bitcoin ETF application, the company has claimed that 95 percent of the reported BTC spot volume on CoinMarketCap is fake. Reportedly, only $270 million or uner 5 percent of the reported BTC spot volume on the website can be considered real economic activity.
The study also outlines other pressing issues, such as the fact that only 10 cryptocurrency exchanges have more than $1 million worth of daily bitcoin trading volume.