Player and referee? Zhao Changpeng quotes CMC data, implying Binance is not afraid of the fire, but inadvertently sparks controversy.

Binance exchange founder Zhao Changpeng (CZ) cited Coinmarketcap data yesterday and tweeted a series of tweets stating that Binance's daily trading volume reached $11 billion, surpassing the 2018 record to hit a new all-time high, and subtly mocking other exchanges as being fake. However, his claims seem to be quite controversial.

Breaking $11 Billion, a Historical Milestone?

Changpeng Zhao (CZ), the founder of Binance, tweeted this morning on Twitter:

"Exchanges that wash trading volume cannot sustain their false trading volumes during market volatility."

Furthermore, in the same tweet, CZ's CoinMarketCap screenshot seems to suggest that Binance's trading volume can withstand market challenges, implying that Binance's trading volume is more authentic compared to other exchanges that usually lead in rankings.

The fake volume exchanges can't keep up with their fake volumes in volatile markets. A tell-tale sign.

Yes, I did pass your feedback to the @CoinMarketCap team. They are working on it. pic.twitter.com/r7NtVDNM35

— CZ 🔶 Binance (@cz_binance) April 29, 2020

In fact, as Bitcoin surged significantly yesterday, CZ continuously promoted that Binance's daily trading volume reached $11 billion, surpassing the historical high set in January 2018.

https://twitter.com/cz_binance/status/1255581820017508352

However, after analyzing CoinMarketCap's trading volume data, several issues were discovered. Firstly, the $11 billion trading volume shown by CoinMarketCap includes both spot and futures trading. However, back in January 2018, Binance had not even launched futures contract trading, meaning that the $11 billion trading volume in 2018 was purely spot trading volume. Upon actual calculation, it was found that at the time of writing this article, the spot trading volume was only about $3 billion, making CZ's statement clearly misleading.

Player and Referee

Many cryptocurrency exchanges shape the illusion of having a large user base, good trading depth, and liquidity through wash trading. Therefore, ordinary investors need to rely on fair third-party data platforms to provide them with filtered data that is closer to reality after eliminating noise. However, since the news of Binance's acquisition of CoinMarketCap, the largest data platform in the cryptocurrency market, at the end of March, its fairness has been continuously questioned.

Although it has been confirmed through comparison that there is no abnormal data in CoinMarketCap's data compared to the second-largest data platform Coingecko currently, CZ's use of CoinMarketCap's data as a player and referee inevitably raises suspicions of potential data manipulation.

Related Reading

• Binance rumored to be acquiring CoinMarketCap, acquisition price could reach $400 million
• Following CoinMarketCap's acquisition, CoinGecko's user base rapidly growing, is there a changing of the guard in data websites?

Join Telegram now to get the most complete information on Fintech, Blockchain latest news, and industry examples!