Crypto News Weekly 31.08.18: Top crypto exchanges faking volumes
Top crypto exchanges faking volumes?
In a report published this week by the Blockchain Transparency Institute, it is claimed that up to 50% of the daily trade figures are false. The researchers go on to say that $6 billion of the CoinMarketCap-published $13 billion is generated by exchanges using wash and bot trading to boost their volumes. They accuse seven of the major crypto exchanges of using such practises.
At present they gave Binance, Bitfinex, and Coinbase a relatively clean bill of health, but at the opposite end of the scale, they accuse ZB exchange of boosting their volume by a 390 multiplier and LBank by 4400 times.
Operation Cryptosweep tops 200 investigations
Operation Cryptosweep, which is the coordinated efforts of American state regulators being led by The North American Securities Administrators Association (NASAA), has boasted of having over 200 ICO-related cases under investigation in their press update this week. Within the ongoing investigations, they talked about schemes falsely using pictures of actress Jennifer Aniston and Supreme Court Justice Ruth Bader Ginsburg, while one venture was publically selling stock videos of Bitcoin mining operations for companies wishing to pretend to be launching such projects.
Chinese mining giants seek IPOs
Since the breaking news recently that Bitmain, first of all, was going for a September ICO, then all the ensuing press interest, about whether one of the main backers was going to walk over false claims, and that Bitmain maybe was heading into an unprofitable time, it seems that the other crypto mining manufacturing giants in the sector want in on the action, too.
Canaan Inc and Ebang International Holdings are said to be eyeing up major IPO plans, but it seems now to be a race to get to market before conditions change, or a cynic might say before the investors wake up and realize these players are heading for harder times.
Bill Cosby accused of hiding wealth in bitcoin
American tabloid Radar Online has accused Bill Cosby of purchasing $5 million of bitcoins in an attempt to hide some of his wealth from creditors, wives and courts. The disgraced actor, who is facing sentencing for sexual harassment later in September, was said to have acted in accordance with a financial advisor that the payments could not be traced on the Bitcoin network. For a guy that also owes his lawyer an unpaid $1 million in fees, maybe he would be better talking to Alex, Siri or the google assistant in the future.
August ICO scams net $68 million
Diar Research has published a report this week highlighting some of the major frauds noted by themselves in the ICO sector and other interesting investing facts. They say that two major scams in August siphoned off over $68 million, these being the Chinese Shenzhen Puyin Blockchain Group that ran three ICOs - ACChain, Puyin Coin and BioLifeChain, ($60 million) and decentralized exchange NOV ($8 million).
Within the same report, it was noted that while Ponzi schemes and exit scams are easy to recognize, ICOs that raise funds and burn through the money without delivering a final product are far harder to spot.