Gemini dollar [GUSD] trade volume surges over 90% in a day
The fledgling stablecoin, Gemini dollar [GUSD], backed by the Winklevoss twins, is showing odd trade volume figures. The data according to CoinMarketCap shows that the coin’s trade volume witnessed a sharp increase on December 14 from the previous day. Winklevoss’s GUSD hasn’t seen much adoption compared to the Coinbase backed USDC.
The GUSD stablecoin saw a trading volume of $1.5 million on December 13. The very next day the trade volume shot through the roof with an increase of over $15 million. The data indicated that the trading volume on December 14 was $18 million, roughly a 90% increase. December 13 recorded a whopping $30 million trade volume, another drastic increase from $18 million. At the time of writing, the trade volume of GUSD stands at $29.56 million.
All on a single exchange
Notably, the total trade volume of GUSD seems to be derived from a single exchange. According to Cryptocompare data, all of the GUSD/USD and GUSD/BTC trade volume is from Exmo.
Exmo is a UK based cryptocurrency exchange. There is no much information available online as it is a small exchange compared to other exchanges like Binance and Bitfinex. However, 99bitcoins, an online page which publishes exchange and cryptocurrency reviews, wrote, “As Exmo is a relatively small cryptocurrency exchange, there’s little in the way of opinion to be found online. What’s more, there are no other reviews on authoritative sites. The vast majority of Exmo reviews to be found appear to be paid reviews, which raises a certain degree of suspicion.”
Additionally, a majority of GUSD trade volume comes from the GUSD/USD and GUSD/BTC trading pairs. GUSD/USD trading accounts for 33% of the GUSD trade volume while GUSD/BTC accounts for 37%.
Recently, a report which was published by the Blockchain Transparency Institute [BTI] stated that top 25 Bitcoin [BTC] trading pairs on the CoinmarketCap data are subject to wash trading. Some major exchanges like OKEx, Huobi and Bithumb were involved in wash trading numerous trading pairs existing on their platform. Is the abruptly inflated Gemini dollar trade volume on Coinmarketcap one such instance? Is Exmo involved in wash trading? Or is this just a Christmas rally?!
Image via Shutterstock