Cleaning Up Crypto Exchange Wash Trading Will Take Global Regulation

When Bitwise Asset Management declared in a March 2019 presentation to the United States Securities and Exchange Commission that 95% of the Bitcoin (BTC) trading volume being reported globally on cryptocurrency exchanges was “fake,” it jolted rating firms, exchanges and the larger crypto world. Data analytics firms recalibrated their exchange ranking metrics, and some assumed it was just a matter of time before wash trading was curtailed if not eliminated. But wash trading was back in the news last week when the CEO, president and chief operating officer of Canadian…

Third OKEx Trading Contest Offers $150K in Prizes

Cryptocurrency exchange OKEx announced the official launch of its third “Elite Team Trading Contest”, which will offer a total jackpot of 150,000 USDT in prizes. According to the announcement, the contest, which starts on August 10, will last for two weeks until August 24. The top 10 teams in the contest will receive a share of the total prize pool. This will also allow OKEx users to trade futures, perpetual swaps, options, and spot/margin products on the platform. Jay Hao, CEO of OKEx, commented on the contest: “In the past…

For Some Reason, Wash Trading Happens on Decentralized Exchanges Too

Decentralized exchanges are generally liked for their transparency and lack of custody, reducing the trust requirements in their operators. Many centralized exchanges have been caught in a peculiar type of manipulation used to inflate their trading volumes. This was first highlighted by the Bitwise Report released in March 2019, which analyzed trading patterns on some of the platforms to conclude that up to 95% of reported Bitcoin trading volume at the time was essentially fake. One of the ways to inflate volume is the practice of wash trading, where a…

Crypto Usage and Trading Surging in Africa, Exchange CEO Says

Crypto usage and trading has made its way over to Africa, gaining prevalence all over the continent, according to Chris Maurice, CEO of Yellow Card — a crypto exchange based in Lagos, Nigeria. “In terms of the crypto scene and everything, things are growing very rapidly, really across the continent, but specifically in Nigeria, South Africa, Ghana, and Kenya,” Maurice told Cointelegraph in an interview.  With the four mentioned countries leading the crypto charge, Maurice added, “At this point, it’s just a matter of time before it continues to expand…

Shapeshift Launches Self-Custody Trading App for Android and iOS Users

Self-custody crypto platform Shapeshift has launched a mobile trading app for iOS and android users to buy and sell digital assets such as Bitcoin (BTC) and Ether (ETH) without trusting their private keys to a 3rd party. The app which only requires users to use an email address and password to sign in with currently supports BTC, ETH, Litecoin (LTC), DigiByte (DGB), TrueUSD TUSD and ERC-20 tokens. Shapeshift CEO and Founder Erik Voorhees stated the mobile app will give users self-sovereign finance anywhere: “As traditional financial systems become increasingly tenuous,…

Coinsquare’s Leadership Forced Out After Wash Trading $5.5B

Coinsquare’s CEO Cole Diamond and President Virgile Rostand will step down and pay a $1.6 million fine as part of an agreement with Canadian regulator the Ontario Securities Commission (OSC).  According to an announcement from the OSC following a July 21 hearing, Diamond and Rostand have agreed to resign from their positions at the cryptocurrency exchange and will pay around $750,000 and $670,000 in penalties, respectively. Coinsquare and the disgraced duo will also shoulder $223,000 in costs for the investigation.  The Canadian regulator said Diamond and Rostand are effectively banned…

China Considers Implementing Blockchain Tech in Equity Trading Centers

The China Securities Regulatory Commission, or CSRC, recently issued a letter approving five regional equity markets. They will include equity centers in Beijing, Shanghai, Jiangsu, Zhejiang and Shenzhen. These and other regions received authorization to begin experimenting with a blockchain pilot in early July. Blockchain and equity trading According to Beijing Local Financial Supervision and Administration, the next step for the CSRC is to guide Beijing Equity Trading Center to carry out the blockchain pilot. The trading center in Beijing has allegedly built a “relatively perfect infrastructure” for equity registration,…

What the DOGE Is Going on? TikTok Creates New Crypto Trading Paradigm

Less than two weeks after the price and trade volume of Dogecoin (DOGE) exploded following a get-rich-quick TikTok challenge that went viral, the meme coin has been making headlines again. This time, Elon Musk’s humorous tweet briefly reversed the downward trend that the asset had entered since the TikTok boost began to wear off. While the latest development might bolster the impression that Dogecoin only thrives on fleeting, whimsical cycles of the internet’s attention, it should not obscure the potentially bigger lessons of its earlier user-powered surge. Meme factory meets…

Synthetix Takes Mimetic Trading Platform Out of Stealth Mode

Synthetix unveiled its new decentralized asset management platform dHedge, emerging out of stealth mode.  dHedge takes advantage of non-custodial mimetic trading for Synths, or tokens that provide exposure to assets such as gold, Bitcoin and the U.S. dollar on the Ethereum blockchain.  Synthetix founder Kain Warwick said dHedge will harness the full power of the protocol. He added: “dHedge is one of the first platforms to fully utilise the power of the Synthetix protocol. I’m extremely excited for its impact not just on the Synthetix ecosystem, but for DeFi at…

Canadian Regulator Accuses Coinsquare of Wash Trading

Canadian regulator Ontario Securities Commission (OSC) has accused embattled exchange Coinsquare of market manipulation and misleading clients about trading volumes. The OSC alleged Coinsquare, which has been accused of wash-trading and reports of a hack, had “engaged in conduct contrary to Ontario security laws.” The regulator also named founder Virgile Rostand, CEO Cole Diamond and chief compliance officer Felix Mazer as respondents.  A hearing regarding the case will be held on July 21.   In its complaint, the OSC said Diamond directed Rostand to inflate trading numbers in March 2018. Rostand…