Forbes published his new analysis of 157 cryptocurrency exchanges, finding that likely 51% of reported daily Bitcoin trading volume is fake.

Forbes: More than half of Bitcoin’s reported trading volume is fake or unprofitable

In the “Forbes Digital Asset” section, a new report has been published this analyzed 157 cryptocurrency exchanges, finding that 51% of reported daily Bitcoin trading volume is fake.

“A new Forbes analysis of 157 crypto exchanges finds that 51% of reported daily bitcoin trading volume is likely fake: @eltrade.

Fundamentally, taking June 14 as the reference dateForbes estimated that the global daily Bitcoin volume for the industry was $128 billion. This is therefore 51% less than the $262 billion that we would obtain by adding the self-reported volumes from multiple sources.

Not only that, according to Forbes, the most problematic areas regarding fake volumes are companies that claim large volumes but operate with little or no regulatory oversight that would make their numbers more believableincluding Binance, MEXC Global and Bybit.

Overall, the least regulated exchanges in the Forbes study account for approximately $89 billion in actual volume (compared to $217 billion claimed).

Forbes and the Spread of Bitcoin Wash Trading

A significant finding that Forbes describes in its report is precisely the spread of wash trading on Bitcoina form of false volume, and the lack of oversight on cryptocurrency exchanges.

Fundamentally, some traders engage in wash trading by inflating the trading volume of an asset to give the impression that it is gaining popularity. Most of the time, performing such token swaps is made by trading botsincreasing the volume, while insiders reinforce the asset with bullish commentary and drive the price up in a pump and dump pattern.

At a time, wash trading also becomes advantageous for cryptocurrency exchanges, as it allows them to appear with more volume than the real thing.

Forbes adds that there is no universal method for estimating the daily volume of bitcoin and, to set an example, on the day of publication, it shows how the latest Bitcoin trade in 24 hours is worth CoinMarketCap $32 billion, CoinGecko $27 billion, Nomics $57 billion, and Messari $5 billion.

Some Cryptocurrency Exchanges Are Insolvent: Word from FTX’s Sam Bankman-Fried

Two months ago, Forbes also conducted a interview with the CEO of FTX Sam Bankman Fried who would have explained how he thinks many cryptocurrency exchanges are insolvent, even though they hide it.

At the time, FTX had been profitable for 10 quarterswhile rival Coinbase lost $432 million, also losing a share of COIN stock.

With assets of up to $20.5 billion, Fried also added that many cryptocurrency exchange failures are yet to come.