For some time now, there have been lots and lots of talk about the real and fake trading volumes concerning crypto exchanges. Of the people that have said a word or two about the issue, the recent tweet by Binance CEO seems to have hit a nerve.
“It’s Getting A Little Out Of Hand”
In his tweet, CEO Changpeng Zhao didn’t mince his words in expressing his displeasure in the fact that most of the crypto exchanges ranked above Binance have actually way fewer customers compared to his exchange, and that’s what makes it very weird that they would really post more trading volumes than Binance. That’s especially given that Binance is currently the most used crypto exchange in the world. So what the heck is happening?
They’re faking it. There’s no denying that, given the facts on the ground, Binance should actually be the top-ranked crypto exchange, but it’s currently ranked 8th, way behind exchanges like CoinBene, OOOBTC, HitBTC, and Coineal. It’s very weird that some of these exchanges would post figures to the tune of $500 million in daily transaction volumes.
it’s a “secret” that I didn’t want to share with them before, lol… But for the health of the industry, we need to let them know they are actually hurting themselves.
— CZ Binance (@cz_binance) April 6, 2019
“A Secret I Didn’t Want To Share With Them”
In the same tweet, Zhao went on to intimate that what these exchanges don’t know is that credibility is the key to success in the crypto business. Who would trust a lying exchange with their hard-earned money?
However, Zhao threw a joke in the mix to cool things down, saying that the credibility part is a secret that he has known but has been reluctant to share with the lying exchanges. Still, he felt that he needed to let them know of their wrongs, even if just for the sake of the health of the crypto industry.
The funny part about the whole volume faking business is that the exchanges are in fact hurting themselves in the process. According to Zhao, no one wants to entrust their money to such untrustworthy exchanges, meaning that while they fake their volumes and get ranked at the top, they end up losing customers and business in the process.