Litecoin Wash Trading: 93% Of All LTC Traded In One Day

According to CoinMarketCap, there was a litecoin wash trading since all litecoin in circulation changed yesterday when about 93% of the coins were traded in one day. As pointed out by one crypto analyst, the problem with wash trading is only increasing and is getting hard to control so let’s see how we can prevent it in the following Litecoin News now.

One of the most popular crypto analysts in the field Mati  Greenspan pointed out that the problem with Litecoin wash trading volumes on CoinMarketCap is a ‘’getting out of hand.’’ Looking at the numbers, things also look wrong. What is even more frustrating, seeing further we can see that there is a lot of trading volume for litecoin coming from fairly unpopular exchanges.

This makes the notion of wash trading even more possible. The term Wash Trading refers to a process when someone buys and sells at the same time, one asset in order to feed fake information to the market. As was reported recently, recent studies show that 50 percent of all Bitcoins are also subject to wash trading. There are a lot of examples that could back the claims that a huge chunk of the market’s traded volume is a subject to wash trading.

It is also not only these few cryptocurrencies that Greenspan pointed out that look heavily inflated. For example, Status is another one that looks sketchy since it has a market cap of about $37 million and trading volume over the past 24 hours of $183 million. Back in November, CoinMarketCap was under the radar for displaying wash traded volumes again but the website was supposed to introduce a new liquidity metric that addresses the same issues. However, there is a lot of room for development in this regard.

As we reported earlier on DC Forecasts, the drop in price comes months after the Litecoin halving event and it raises the questions among the community if the network of this altcoin can be jeopardized easily if the LTC hash rate continues to drop. The hash rate is dropping violently over the past six months and the all-time high was reached in July but ever since then, it has been dropping continuously, noting the lowest value for 2019 a few days ago.