Is Binance Inflating Its Volume?
By pushing the recent analysis by Bitwise Asset Management a few steps further, we have uncovered evidence that Binance may be inflating its trading volume.
During our review of the recent Bitwise Asset Management report, we uncovered some potentially concerning findings regarding the spot trading volume reported by Binance. Given our prior positive coverage of Binance's market share growth, we have consolidated our evidence, analysis, and findings into a summary report.
In this report, we cover three findings from our analysis:
Binance Coin’s (BNB) 'spot volume' routinely surpasses that of Bitcoin.
Tokens that undergo an Initial Coin Offering on Binance’s ‘Launchpad’ have highly questionable spot volume relative to Bitcoin.
Binance’s normalized trading volume distribution supports the hypothesis that it is inflating its trading volume.
At this time, we are sharing potential evidence, not conclusive proof, that Binance is inflating its trading volume. Still, the combination of the three above findings seem extraordinarily unlikely to happen via rational, market-led action.
Note: Volume can be influenced by a number of unconsidered internal or market factors, and may change rapidly. To alleviate this variability, we have observed these findings over time where possible.
As always, we want to caveat that any opinions expressed in this article are those of the author(s), and are not financial advice. Please take personal responsibility for yourself and your actions. We are reporting observable facts only, with no hidden or speculative analysis, in order to let the reader draw their own conclusions.
Our authors trust their own research, and may own positions in assets covered in this article (if applicable). Please do your own research to corroborate our findings. For our full disclaimer, please see HERE.