Bithumb may be involved in Bitcoin wash trading with a sudden rise in trading volume 22304 Bithumb is a prominent Korea based cryptocurrency exchange platform
News
Ashmita Dutta
Sep 4, 2018 at 1:28 PM

The sudden rise in trading volume of Bithumb, a Korean crypto exchange is perhaps due to usage of Bitcoin in wash trading. This event has, indeed, been quite conspicuous among the cryptocurrency traders and investors. Since last week, with the passing of each day this upsurge has occurred. Alex Kruger, a prominent trader dealing with digital currencies has expressed his views stating that a major portion of Bitcoin is used by traders to make nearly $9million on the cryptocurrency exchange.

The trader, Alex Krugger on his official Twitter account has revealed his suspicion towards the activity of wash trading conducted by Bithumb. His tweet reads as, “There is currently USD 250 millions of fake volume traded at Korean crypto exchange Bithumb, every day at 11 AM Korean Time, since the 25th of August. My Tweet storm covers the math behind it in simple terms. Wash trading illustrated.” 

On the popular social media site, he has posted a series of tweets based on this particular issue. He has mentioned that at 11 am, in accordance to Korean Standard Time, the trading volume of Bithumb unusually increases. As per his statement, the $250 million rise in the false trading volume since 25th August, 2018 is due to the airdrops conducted by the cryptocurrency exchange at the specified time. One of his tweets state, “Bithumb offers 120% payback of trading fees as an airdrop. ”Daily Limit is 1 billion Korean Won. First Come First Served”. KRW 1 billion = USD 900,000. Daily.” 

 

As mentioned earlier, the traders earn approximately $9 million daily at 11 am by carrying out trade of nearly 31k Bitcoin. This incident has repeated itself since 25th August. This would eventually imply that on this exchange platform, the trading of 252 billion Korean Won is conducted by using Bitcoin and also other crypto coins are used for the trading 26 billion Korean Won, last week. Kruger has further clarified that to make the traders hold the whole amount rebate, a single or few number of traders will be possessing a volume of nearly 279 billion in Korean Won, per day.

 

See also: Bittrex de-lists Bitcoin Gold; the hard fork says it won't impact BTG trading volume

See also: Bitcoin and cryptocurrency ATMs set for a major leap in Greece

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