What measures are being taken to combat fake volume on crypto exchanges?

3 answers

• Dec 28, 2021 · 3 years ago
  Crypto exchanges are implementing various measures to combat fake volume. One common approach is the use of stricter KYC (Know Your Customer) procedures, which require users to provide more detailed personal information and proof of identity. This helps to ensure that the trading volume on the exchange is coming from legitimate users. Additionally, exchanges are also investing in advanced trading surveillance systems that can detect and flag suspicious trading patterns indicative of fake volume. By monitoring trading activities and analyzing data, exchanges can identify and take action against accounts involved in manipulative practices. These measures aim to maintain the integrity of the trading volume and provide a more transparent and trustworthy environment for traders.
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• Dec 28, 2021 · 3 years ago
  To combat fake volume on crypto exchanges, some platforms have started implementing trading fee incentives. By offering lower fees for users who provide liquidity and engage in genuine trading activities, exchanges encourage honest participation and discourage the creation of fake volume. This approach not only helps to weed out manipulative practices but also promotes a healthier and more sustainable trading ecosystem. Additionally, exchanges are also working closely with regulators and industry organizations to establish standardized reporting and auditing procedures. By collaborating with external entities, exchanges can ensure greater transparency and accountability in reporting trading volume.
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• Dec 28, 2021 · 3 years ago
  As a leading crypto exchange, BYDFi takes the issue of fake volume seriously. We have implemented a multi-layered approach to combat this problem. Firstly, we have strengthened our KYC procedures to ensure that all users are verified and legitimate. Secondly, we have invested in advanced trading surveillance technology that can detect and flag suspicious trading activities. This allows us to take immediate action against accounts involved in fake volume manipulation. Lastly, we are actively working with regulators and industry organizations to establish industry-wide standards and best practices for reporting and auditing trading volume. Our goal is to create a fair and transparent trading environment for all our users.
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