Uncovering the Essential Role of Wash Trading for Market Makers on Bithumb

IconCryptoNewsTerminal Staff22 Aug, 2024

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Uncovering the Essential Role of Wash Trading for Market Makers on Bithumb

Uncovering the Necessity of Wash Trading for Market Makers on Bithumb Wash trading has emerged as a matter of concern in the cryptocurrency market, and Bithumb, a major South Korean exchange, has been at the center of such allegations. According to a statement given by Ryu, a market maker accused of fraud in the PURE (Pure Forever) scam, wash trading has been a necessary practice for maintaining trading volume on Bithumb. Ryu stated that Bithumb expected a trading volume of 500 million to 1 billion won, which could only be achieved through wash trading. This revelation suggests that exchanges may engage in unethical practices to create the illusion of high trading activity. The allegations against Ryu highlight the importance of addressing wash trading and its implications for market integrity. Regulators should take a closer look at the practices of exchanges and implement measures to curb manipulative trading practices that undermine market confidence.

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