Cryptocurrency trade OKEx has refuted new allegations of manipulative practices reminiscent of wash-trading on its platform.
In an announcement shared with Cointelegraph on September 23, the trade wrote that the allegations of the wash commerce recent report from the Blockchain Transparency Institute (BTI) have been "not correct and deceptive."
"An apple-to-orange comparability"
As reported, the BTI printed its newest report on September 19, claiming to have recognized what it thought of the cleanest inventory exchanges within the business, in addition to these with the alleged highest prevalence of market manipulation.
Wash buying and selling refers to a follow the place gross sales and buy orders are positioned concurrently on the identical asset to artificially enhance buying and selling volumes, whereas creating the impression that there’s extra demand for the asset than it truly is. The follow is prohibited on regulated trade platforms.
OKEx – along with Bibox – was chosen particularly by BTI as one of many platforms with the allegedly highest ranges of washing on its platform. The trade has rejected this declare, arguing that "BTI's analysis methodology is just not clear and that they don’t present information to substantiate their claims."
OKEx continued to assert that, given its nature as a crypto-derivative platform, the attribute buying and selling patterns – of "hedge funds, personal merchants and high-frequency buying and selling firms" – comply with a special sample than simply areas:
“Because of the complexity of buying and selling in derivatives, hundreds of transactions might be positioned per day by a single consumer through collocated machines. Making an attempt to make use of retail-oriented parameters reminiscent of web site / cellular site visitors in each survey is de facto an apple-to-orange comparability. "
"Dedicated to surveillance"
Other than accusing BTI of a scarcity of completeness in its evaluation and using inappropriate strategies to research reported inventory market volumes, OKEx additionally used the assertion to indicate its obvious dedication to mitigate the dangers of market manipulation. to underline on his website:
“We now have a buying and selling surveillance staff that works 24/7 to trace the transactions on OKEx. Suspicious market manipulation reminiscent of self-trading will alert our system, the affected customers will instantly have suspended or terminated their accounts. We additionally work with AML firms and persistently improve our KYC system to make sure that our market is wholesome. "
OKEx added that it not too long ago joined the Knowledge Accountability & Transparency Alliance led by CoinMarketCap, which was established in an effort to enhance the standard of reported volumes after a collection of bomb reports revealed the apparent prevalence of manipulative industrial practices within the business.