Don't believe the hype. One of the top 15 crypto exchanges fakes its volume
Have you ever wondered how it could be possible for the newbie exchanges like BitForex, FCoin, and CoinEx to make it to the TOP-15 by daily trade volume? Not to mention that they have managed to beat Binance, OKex, Huoboi, KuCoin, Kraken, and Upbit. With the help of Crypto Exchange Ranks, we feel like we finally got closer to solving this mystery.
We conducted extensive research by comparing the social media and community activity of Kraken, Hacken, and KuCoin to that of BitForex’s, as well as an analysis of the correspondence between the volume of active traders and the number of users. Thus, we were able to distinguish BitForex’s results from those of TOP crypto exchanges such as Binance, OKex, HuobiPro, HitBTC, Bittrex, Poloniex, and KuCoin.
Analysis from the open sources included:
- Identification of the trading volume of BitForex: the exchange went from TOP 70 to TOP 7.
- With the help of Similar Web, we analyzed the amount of monthly traffic, unique visitors (UV) and unique users (UU) on the BitForex website.
- Analyzing BitForex traffic by channels: the main traffic sources (92%) turned out to be direct visits, referral traffic from Coin Market Cap, and organic searches.
- As a result of analyzing the number of subscribers on social media networks like Twitter, Telegram, YouTube, and Facebook, we could see that BitForex has only 4-5k real users, while the rest are bots.
The research showed that it is much more convenient and cheaper for BitForex to reach and maintain a top-rated listing by forge trading volumes, rather than applying professional marketing and communication strategies.
We also performed a volume-per-user comparative analysis to show how inconsistent BitForex’s strategy is. The results we received were pretty fascinating: BitForex’s average trade volume was 12,824 USDT through June 2018. Thus, at the end of this analysis, we concluded that BitForex is driving its trading volume using wash trade.
Still curious what wash trade is and how BitForex was able to produce such high trading volume without having an active and loyal social network community? Follow the link to our article and dive into an in-depth analysis of why driving up fake 24h trading volumes is such an effective marketing technique for BitForex.
Check it out right now and see how the numbers speak for themselves!
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