Massive Crypto Exchange Manipulation - Trace Mayer Weighs In

Hey you, welcome back to the channel. And guys, today I want to bring you this video that I have been meaning to do for a while now, and it's dealing with, of course, the enormous amount of manipulation that goes on with the cryptocurrency exchanges. This is a report that comes from the BTI, which is the Blockchain Transparency Institute, uh, which says that, um, major cryptocurrency exchanges are manipulating their own volume figures. The BTI report claims as much as 80% of the volume of the top 25 Bitcoin pairs are subject to wash trading and manipulative bot trading. So over 80% of the volume exchanges are inflating their own volume numbers in an attempt to draw huge listing fees from new coin projects. What is wash trading? Wash trading is a practice by which an investor or company buys and sells an asset simultaneously. They are essentially buying and selling from themselves. Do this with enough frequency and it gives the impression of huge volume. The BTI claims that major exchanges use wash trading techniques to fake the volume on their exchanges. By doing this, crypto exchanges appear larger or more active than they truly are. In some cases, the true volume— listen to this, guys, think about this. In some cases, the true volume is under 1% of the reported volume. To find out how deep the problem goes, BTI calculated the true volume of CoinMarketCap top 25 pairs, Bitcoin pairs. The research firm discovered that the actual volume on most of the pairs is less than 1% of the reported figures. The worst offenders are OKExchange, uh, BitHumb, and Huobi. Huobi, is that how it's called? I don't even— I only use the major exchanges, guys, so have no idea about many of these guys. So I, I just want to stop right there, uh, and we're going to look at this chart here and, and look at some of this volume. But do you see, guys, where the problem lies in the cryptocurrency space? Only about 1%, and in some cases under 1% of what we're seeing as volume is actually real. And it makes a lot of sense. You know, a lot of these coins that people start, it's fake volume. The liquidity is not there. That's how come you— we have these large, uh, uh, gaps, margin gaps. We have all this volatility. Reality because it's not true volume, guys. And you can look at, I guess these would be the worst offenders. And, you know, it's crazy, guys. They're, they're the amount of the visitor channel and the people that are trading. Basically what it breaks down to, guys, is when you divide up how many people are actually visiting the exchange, and you divide that by the volume— or, or, so yeah, right, the volume— divided by the volume, what you're getting is the average person's trading sometimes thousands of dollars, you know, per, per, per session. So you got like a BitHumb here, you got one, uh, the average person's trading $24,000. OKExchange, the average person's trading $10,000. The The problem with that is if we look at earlier reports of what we've seen, we see where the average person has $3 or $4 in their Bitcoin wallet, and these are Bitcoin pairs. So how is it possible all this volume could be taking place? Guys, um, you know, we have to be realistic about what's happening in the cryptocurrency space. And I think the only way this can truly be solved is mass adoption. How are we going to get mass adoption? The only way we can get mass adoption and make the actual exchange figures we're seeing real, the only way we're going to achieve that is demand. There has to be needed demand for the cryptocurrency space. But a lot of us got our heads in the clouds and we just can't come down. We're hopeful, but we're not being very diligent, right? We're not doing our due diligence. We're not being realistic. And the problem with that is some reports have suggested that Bitcoin's true trading volume is around $800 because that's when the greatest demand comes in from people dealing with hyperinflation. People dealing with not having banks in certain regions, they can't get them. But when you head over to the West, guys, we're using MasterCard, we're using Visa, our banking system works great still. And people aren't moving over to the cryptocurrency space for those purposes. When they talk about platforms and games and logistics, we're using the systems we already have in place for those things. You know, there isn't the demand and the supply systems we have now, the peer-to-peer systems we have now. The, uh, if you want a ledger, uh, you can, uh, data can be saved, uh, and stored in databases, uh, very well. They can be stored, uh, uh, and timestamped, uh, and, and so there isn't a huge demand for the cryptocurrency space yet until we create one. And when we do Uh, that's when these numbers will be, uh, real. Now, if you watch the channel, you, you know that I talk a lot about one real use case being that it's not a question of whether it will happen, it's just a question of when. And that's robotics, uh, automation that's going to cripple our entire job market. We're going to need a value delivery system to the people. That's something that people can't ignore, that there will be a demand for, that people will need to partake in. It won't be a choice. It won't be just, uh, this is a good idea for me to invest in cryptocurrency and get rich. We will have two options where we can either let the government try to solve the problem, in which the government may actually just not do anything and we all fail, or they may try last minute at the precipice of the worst of it and the system is inefficient and it doesn't work well. Or we could use blockchain technology, cryptocurrency, to start experimenting with this, developing this, and already have a good handle on this in a private way, in a private way in which we can handle and distribute better than the, than the governments and powers that be will. But let's look at some, some solutions to this market, this huge exchange market manipulation. Many of you are familiar with Trace Mayer. He's a pillar in the cryptocurrency market, an entrepreneur, um, an author. Um, I believe he may even be an attorney, but what I do know is he studied Austrian economics, so he's well-versed in how money works. And it takes people like this to understand what's going on. We have treated the cryptocurrency space like a casino, like a gambling casino. But guys, really, if that's what you're hoping to get from this space and you're hoping you can win from it, the chances of you winning are gonna almost be like winning in the casino. But the thing is, at least with gambling, as far as I know, legislation allows you to write off your gambling losses. And so the crypto space is still, you know, trying to figure out where it fits into the tax scheme of things. But you might be better off there. This may not be the place for you until you look at coins and you adopt coins that deal with bringing in mass adoption. You know, not just you making a few gains and spikes in the coins you hold because you like some of the concepts of them, but we're finding other platforms in our system today that just handles it, does it a million times better. It may not work for you guys, but let's get back to Trace Mayer. What Trace Mayer is saying is that what we need to do at this point in time, take our money off these centralized exchanges and just hold them for a while in our wallets. Take them off these centralized exchanges, put them on decentralized exchanges, you know, or just take them off completely. And see what happens. If we get a bank run, if these exchanges are solvent, let's see who holds up because we know at the end of the day, many won't hold up. It's estimated it's only about 3 that will possibly hold up, you know, but this is part of the problem is there's a severe issue we have here and we really need to address this. We're going to need mass adoption to solve this. And we're really going to need to take a look at what that means, where the demand is for that, and how we're going to get that. Some people say it's still a new technology. Some people disagree with that. They say Bitcoin's been around over 10 years now, and that's long enough for us to have adopted it if the demand was there as it should be. We will have to see, guys, but this is the reality of the situation with exchanges, our volume, our liquidity, and how we need to look at blockchain technology, how we need to go forward, and what can be done. But guys, that's all I want to say in this video. Guys, if you like content like this, don't forget to like, subscribe, and until next time, take care.