CCBeast Special


Research: Bitbns has inflated Trade Volumes of Bitcoin (BTC) and XRP inflated by 500% and 668% respectively
Editorial Team

Bitbns is one of the top cryptocurrency exchanges in Inia. It was found to have altered the trade volumes of Bitcoin (BTC) and XRP by over 500%. Crypto enthusiast, Karthik Varma, in his detailed research proved that Bitbns had inflated the trade volumes of Bitcoin and XRP by over 500% and 668% respectively.

The move could have been to ensure that the exchange platform remains on the global radar as CoinMarketCap does not list exchanges below a certain volume threshold.

The “boom” in crypto trading market last year was followed by a sharp drop in trade volumes for almost every exchange. However, Bitbns had a good market and a relatively small but consistent trade volume. By the end of Q1 of 2018, it was observed that the trade volume of Bitbns was significantly higher than its competitors.

Allegations against the platform were raised. Later, it passed off as a bug in their system. Many media outlets such as Coin Crunch India have reported about this.

After a period of stabilization in trading volumes, it later increased dramatically, raising further speculation against the firm. Then, Varma decided to undertake his research to test the facts and figures.

After analyzing the trade history updating system of Bitbns, Varma deployed a system to record the trade history of all Bitcoin and XRP transactions on the platform. Using a detailed Node.js-MySQL program, the data was sorted and recorded based on four parameters; serial number, time stamp, volume and price per unit columns.

An extra code, which will negate generation of duplicate data was also added to ensure the result was accurate. Data for a 24-hour interval was recorded and stored in the database.

Once the data were aggregated and compared to the values put upon the Bitbns website, a huge disparity was observed. Varma says:

“The recorded data showed the trade volume of XRP over the 24-hour interval as 62,365, and that of Bitcoin as 2.638. But on the Bitbns website, the trade volume for XRP was shown as 3,75,410, almost 500% more than the actual volume, and that of Bitcoin was shown as 20.266, almost 668% more than the actual traded volume.”

Any action against Bitbns is highly unlikely as there is no regulatory body governing exchanges, raising question over the credibility of many exchanges,

Bitbns has officially launched since December 2017 and had a strong intrusion into the industry, due to its famous founders. They ensured that their platform provided fast support and a wide array of cryptos.
Many cryptocurrency exchanges after the “crypto boom” used unethical methods to boost their volumes.

Bitforex, one of the top cryptocurrency exchanges, also faced allegations of faking volumes by a large margin. Bitbns’ move seems extremely similar to this, severely questioning its credibility.

TAGS: