Some cryptocurrency enthusiasts might have heard about the meteoric rise of cryptocurrency exchange BigONE. More specifically, BigONE is said to have increased its trade volume by an astounding 6,300,000% in a mere three days, according to data on CoinMarketCap, reaching the Top 3 spot on CMC.
Whilst most would agree that this swift growth would appear odd bordering on suspicious, Crypto Exchange Ranks (CER) decided to go to the bottom of the issue – and CER now argues that BigOne relied on fake trading volumes to reach a top-ranking position.
BigOne is a cryptocurrency exchange that came into view during January of this year. 8BTC has previously reported that BigONE is founded by the famous Chinese cryptocurrency investor Li Xiaolai – however, BigONE has not disclosed any official details on who is behind the exchange, nor who manages it or any key team members.
According to information released exclusively to Toshi Times by CER [now available at this link], it would appear that BigONE has artificially inflated its trading volume. This becomes especially evident when one compares the trading volume on BigONE to the number of unique users visiting the site.
Despite having a 2.3 times higher daily trading volume than Bittrex and a 4.5 times higher trading volume than Poloniex, Bittrex’s number of unique users is 3,680,000 and Poloniex’s is 1,838,600, whilst BigONE’s number of unique visitors is a mere 230,500.
Moreover, technical analysis of the trading volume showed ”inconsistencies” between the volume spikes and price movements.
This led CER to claim that the findings ”serve as strong evidence of volume manipulation”, and they have moreover suggested that their hypothesis is unlikely to be rejected by any party.
CER has previously suggested that manipulating the daily trading volume of an exchange could serve as a marketing strategy of sorts, albeit a deceitful one. It would seem that this might very well be the reasoning behind BigONE’s dramatical increase in trading volume.
More specifically, BigONE’s daily trading volume did not exceed 15 BTC between that of January 23 and June 20. In the days following this, however, the trade volume jumped massively to 401 BTC on June 21, to 51,476 BTC on June 22 and eventually reached a staggering 126,013 BTC on June 23.
This accounts for the mind-boggling increase of 6,300,000% percent over the span of three days – which would indeed seem strange no matter the circumstances. However, thanks to CER, it seems fairly evident that this increase in daily trading volume can now be attributed to manipulation.
Moreover, CER would quickly seem to be shaping up to become one of dishonorable cryptocurrency exchanges’ worst enemies. Crypto Exchange Ranks recently identified that the exchange BitFinex was driving fake 24h trading volumes, supercharging the exchange’s ranking.
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Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.