The BitForex case

When Crypto Exchange Ranks analysed the stock BitForex stock exchange platform in a detailed blog post on 16 July, this caused a sensation.

All sorts of evidence had accumulated to accuse Bitcoin formula of Wash Trading

For example, the Singapore-based exchange has risen from 70th to 12th place on CoinMarketCap’s list of the world’s highest-volume exchanges in just a few weeks. With a trading volume of 227 million US dollars, Bitcoin formula is on a par with renowned exchanges such as Kraken and Kucoin:

But let’s take a look at the other inconsistencies at BitForex. The number of BitForex Twitter followers is almost 2,000, while Telegram has 73,000. This big difference suggests that Bitforex worked with bots at Telegram. BitForex also claims to be licensed in the EU on Twitter. However, there is no evidence to support this thesis. On the project’s website, the company states that it is registered in the Seychelles and only works with independent teams in certain countries.

BitForex also made bold allegations that they had 1.8 million users, bringing 15,000 more to the platform every day.

However, Crypto Exchange Ranks said:

“We see that the number of UU [Unique Users] of BitForex is 29,000. In return, Kucoin has 889,000 individual users. Kraken has 666,000 UU. Kucoin’s number of UUs is 30 times higher than BitForex’s, the number of UUs of Kraken is 23 times higher.”

It takes a certain amount of caution and skepticism before you entrust yourself to an Exchange. A possible way for ranking platforms to prevent regulation and at the same time protect investors from fraudsters would be to include as much information as possible in the ranking. In this way, the grievances could become obvious and speak for themselves.

The US authority CFTC has already addressed the problem of price manipulation – the investigations are ongoing.