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Binance had 4.17 trillion trading volume in the past 7 days

by seydor 3y ago

cowpig 3y ago
I could generate $4.17 trillion in trading volume with myself if the cost of a transaction is updating a row in a database. This statistic doesn't mean anything in isolation
- dymk 3y ago
  Well, to everybody else, trading volume means between different entities, so your loophole probably isn't all that relevant
  - Detrytus 3y ago
    What if you own both entities? And you also own an exchange where the trading happens, so you give them both special Black Friday deal: 0 transaction cost for the next 12 months.
  - Forgeties79 3y ago
    I don’t really mess with crypto anymore, but back when I did, literally every transaction I ever made was with myself. I literally never spent any on a good or service.
- artursapek 3y ago
  What you're describing is called wash trading.
  - 1270018080 3y ago
    Which was 99.9% of the NFT market. I wonder how much of it is the crypto market. Probably not much lower.
MikeDelta 3y ago
I read that exchanges inflate these numbers in different ways, so it can be very misleading. Apparently sometimes this goes very wrong [0]. [0] https://news.ycombinator.com/item?id=36610006 https://news.ycombinator.com/item?id=36610006
killingtime74 3y ago
If you and me traded 1 dollar between us 4.17 trillion times (all electronic, we could probably do more), we would have the same trading volume.
jahnu 3y ago
And what part of the economy did that facilitate?
evdubs 3y ago
The SEC lawsuit, which alleges (among other things) Binance as having lots of wash trading on their platform, still hasn't been resolved. Using statistical methods, for BTC, ETH, LTC, and XRP, Binance wash trading was estimated at >50%. https://www.nber.org/papers/w30783 https://www.nber.org/papers/w30783 You can see other pairs on Binance that are clearly more. For example, GAS is the 9th "most traded" token on Binance. It claims ~$100M in daily volume, but there's not even $1M in liquidity between +/- 2% of spot. That is almost certainly all wash trading. https://www.coingecko.com/en/exchanges/binance https://www.coingecko.com/en/exchanges/binance Binance volume numbers are not believable.
infecto 3y ago
Trading volume should not be confused with real transactions.

Binance had 4.17 trillion trading volume in the past 7 days

by seydor 3y ago

Binance had 4.17 trillion trading volume in the past 7 days

I could generate $4.17 trillion in trading volume with myself if the cost of a transaction is updating a row in a database. This statistic doesn't mean anything in isolation

dymk 3y ago
Well, to everybody else, trading volume means between different entities, so your loophole probably isn't all that relevant
- Detrytus 3y ago
  What if you own both entities? And you also own an exchange where the trading happens, so you give them both special Black Friday deal: 0 transaction cost for the next 12 months.
- Forgeties79 3y ago
  I don’t really mess with crypto anymore, but back when I did, literally every transaction I ever made was with myself. I literally never spent any on a good or service.
artursapek 3y ago
What you're describing is called wash trading.
- 1270018080 3y ago
  Which was 99.9% of the NFT market. I wonder how much of it is the crypto market. Probably not much lower.

MikeDelta 3y ago

I read that exchanges inflate these numbers in different ways, so it can be very misleading. Apparently sometimes this goes very wrong [0]. [0] https://news.ycombinator.com/item?id=36610006 https://news.ycombinator.com/item?id=36610006

killingtime74 3y ago

If you and me traded 1 dollar between us 4.17 trillion times (all electronic, we could probably do more), we would have the same trading volume.

jahnu 3y ago

And what part of the economy did that facilitate?

evdubs 3y ago

The SEC lawsuit, which alleges (among other things) Binance as having lots of wash trading on their platform, still hasn't been resolved. Using statistical methods, for BTC, ETH, LTC, and XRP, Binance wash trading was estimated at >50%. https://www.nber.org/papers/w30783 https://www.nber.org/papers/w30783 You can see other pairs on Binance that are clearly more. For example, GAS is the 9th "most traded" token on Binance. It claims ~$100M in daily volume, but there's not even $1M in liquidity between +/- 2% of spot. That is almost certainly all wash trading. https://www.coingecko.com/en/exchanges/binance https://www.coingecko.com/en/exchanges/binance Binance volume numbers are not believable.

infecto 3y ago

Trading volume should not be confused with real transactions.