A critic of Binance has accused the exchange of building its business from fake volumes. The Bitcoin SV and Craig Wright defender is even of the opinion that the exchange should be banned in Russia following the threats of Changpeng Zhao to de-list Bitcoin SV from his platform.
Binance May Face Ban in Russia
Yevgeny Devine, a Bitcoin SV investor now threatens to instigate a campaign in Russia for the expulsion of the cryptocurrency exchange in the country. This latest development comes a few hours after Binance CEO; Changpeng Zhao threatened to de-list Bitcoin SV from his cryptocurrency exchange if the talks of Craig Wright being Satoshi don’t stop.
As a result of his statement, Devine revealed that Binance lost a $5 billion consortium investment in tweet saying: “Binance just lost a $5B consortium by threatening one of our investments. Any more of this shit, we discuss banning Binance in Russia with our authorities. There are plenty of subjects.”
Despite his threat, cryptocurrency enthusiasts were not fazed as they believe Binance SV will lose more if it is delisted from Binance. Also, most Binance supporters think their preferred exchange will continue its operation in the country.
Of Fake Volumes and Binance
Devine’s attack on Binance is not only as a response to Changpeng Zhao’s lack of confidence on Craig Wright’s assertions that he’s “Faketoshi” but also because of his argument that Binance rise was primarily because they built the platform from fake volumes. He said, “Binance wasn’t banned in Russia solely because certain entities advised the authorities to go soft on exchanges of their own preference, Binance being such, despite its ~70-80% fake liquidity, while pushing the banning of their more legitimate competitors: Bitfinex and Bitstamp.”
He further asserts that most of Binance’s trading volumes are dubious although he didn’t back this up with facts or any other supporting statistics. Devine continues, saying these phony volumes allowed Zhao to market his exchange as the biggest cryptocurrency trading platform in the globe.
It is solely because of this lead that Devine claims that Binance is getting preference in Russia despite “70-80 percent” fake liquidity, adding that the exchange is even pushing for the banning of their more legitimate competitors: BitFinex and Bitstamp.
Critic May be Wrong but Most Exchanges are Manipulating Volumes
To some extend–and although contentious as it may to lay blame on an established exchange without supporting documents, his claims may be true as research indicate that most are taking advantage of the space’s minimum regulation to front a fake façade of success through fake volumes.
Recent findings from BitWise presented to the United Securities and Exchange Commission (SEC) somehow confirm Devine’s claims even if Binance isn’t one of those exchanges wash trading or manipulating volumes. Often, exchanges falsifying data are keen on attracting more customers and even projects though IEOs all to their advantage.
According to the SEC report, Binance and BitFinex as two of the ten exchanges that have actual crypto volume. Even so, the report reveals that 95 percent of the trading volumes recorded on CoinMarketCap are straight up fake. Similarly, another report by CrytpoIntegrity, an anonymous group of data researchers supposedly based in Cyprus, found that 86 percent of trade volumes on crypto exchanges are artificial.
It is perfect fodder for critics to pounce on this opening and attack Binance because as it is, Devine accusations are allegation at the moment.