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Why do you suspect volume is faked? Bitfinex's volume is not even that high. It's only twice the volume of GDAX ($550M vs $250M in last 24h: https://coinmarketc
by mrb 9y ago
Why do you suspect volume is faked? Bitfinex's volume is not even that high. It's only twice the volume of GDAX ($550M vs $250M in last 24h: https://coinmarketcap.com/currencies/bitcoin/#markets https://coinmarketcap.com/currencies/bitcoin/#markets) and we know GDAX isn't faking volume or wash trading because of all exchanges in the world GDAX are the most law-abiding/professional, plus they have high taker fees (~0.25%) which make wash trading expensive/impossible.
So, with Bitfinex (1) trading 10 times more currency pairs than GDAX, (2) being older, and (3) having somewhat smaller fees, it's perfectly plausible they have manage to trade (only!) twice the volume of GDAX.
- cperciva 9y agoI don't have any reason to be suspicious beyond "they have been accused of this". BTW the fact that GDAX has high fees doesn't mean it's expensive for them to create fictitious trades... they don't have to pay themselves fees!
- mrb 9y agoI don't believe GDAX is creating fictitious trades. As I said they are the most law-abiding/professional. Plus they have 30,000 new users signing up everyday, so they certainly don't need to pretend they are successful. Besides, I personally day-trade an average daily volume of ~$200k on GDAX's BTC/USD pair. And I am just one small fish. Imagine about a thousand other persons like me and it would easily explain their $250M daily volume...
- philfrasty 9y agoJeeeez you wrote hdminer in 2010...that is... being suuuuuper early in BTC! Congrats on sticking with it all the time! (Just realized I read that Whitepixel article on your blog a while back, awesome content!)
- ActsJuvenile 9y ago0.25% rates are only for plebs and noobs. There are whale volume discounts available on almost every exchange. Mid-level whales can get 0% rate for trading over certain number of Bitcoins. Back in 2013-14 you could even get NEGATIVE rates for trading large amounts. I.e., if I trade a certain number of BTC, I get a rebate at the end of the month. High volume boosts exchange's rating and brings more customers, so it is a no brainer to offer rebates. If you remember early days of Chinese exchanges, they were doing millions of coins a day in first week of their launch. That was clear example of Exchanges themselves doing wash trading. All volume data is available in public domain for verification.
- mrb 9y agoI was talking about GDAX. You CANNOT get 0% taker fees on GDAX. The lowest is 0.10%: https://www.gdax.com/fees/BTC-USD https://www.gdax.com/fees/BTC-USD
- ActsJuvenile 9y agoYou are talking about Bitfinex, and using 24-hour GDAX volume to support your argument. Bitfinex has traded 1 trillion (not billion) dollars in volume. How did a hacked exchange with no USD deposit or withdrawal method did it? Answer: wash trading and self-manipulation.
- mrb 9y agoNo, my sentence here was about GDAX: «GDAX are the most law-abiding/professional, plus they have high taker fees (~0.25%) which make wash trading expensive/impossible» You somehow replied to me implying fees could be zero or negative on GDAX. They can't. Bitfinex traded $1 billion, not $1 trillion: https://coinmarketcap.com/exchanges/bitfinex/ https://coinmarketcap.com/exchanges/bitfinex/ ($1,168,128,071)
- ActsJuvenile 9y agoYou are claiming that Bitfinex cannot do wash trading because GDAX has higher fees. Doesn't make any sense! I am suggesting that Bitfinex is doing tons of Wash Trading: https://medium.com/@bitfinexed/wash-trading-bitcoin-part-ii-who-and-why-is-someone-wash-trading-on-bitfinex-e1c7b5e0b3bb https://medium.com/@bitfinexed/wash-trading-bitcoin-part-ii-...