Huobi Global Allegedly Participates In Wash Trading, CEO Denies

Huobi Global, the giant crypto startup, was accused of participating in wash trading but the company’s CEO was quick to deny the allegations. In today’s altcoin news we take a closer look of the accusations.

The chief executive Livio Wang stated that he took every possible action in order to discourage the questionable activities since wash trading does not ‘’adhere by Huobi’s core values.’’ The report published by Bitwise suggested that Huobi Global was registering more volumes than actually processed. The research from the investment company explained that the data on the exchange hints of an ‘’anomalous pattern’’ which makes increases in the ‘’large trade sizes.
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By the time Bitwise released its new report, the pattern disappeared which suggests there were some actors involved using Huobi’s platform. Weng of course denied and even stated that after a ‘’thorough check and review of the system’’ they did not find evidence of the pattern:

 “We did identify a few of our market makers conducting what we suspect may have been wash trading for the sake of performance and marketing purposes. We have already communicated with these market makers and they have discontinued the strategies in question.”

According to other reports, CoinMarketCap launched the Data Accountability and Transparency Alliance (DATA) earlier this year. DATA is basically a consortium of industry companies that want to bring the world ‘’better transparency, accountability, and disclosure’’ so you can read that:

“The overarching objectives of DATA are to: 1) Review, align, and enhance reporting standards across the industry. 2) Identify gaps, propose strategies and measures to enhance data accountability and transparency.”

Companies’ data suggests that crypto platforms are still reporting fake volumes. This is among the biggest issues in the crypto space. As noted in the best cryptocurrency news sites, the data from SimilarWeb- a website traffic provider, shows what we can expect with the exchanges in the near future.

Less reliable exchanges or lesser-known ones have registered a huge amount of volume for a little volume and this had led to volume-to-site visit ratios of more than $25,000 compared to the $500 of Binance. It is likely that about 855 of all trading volume is fake and that we need improvement on the data integrity question.