Mark Cuban: “A new blow for cryptocurrencies will be fake trading volumes on exchanges”

The American investor, billionaire and owner of the Dallas Mavericks club believes that high-profile scandals in the cryptocurrency industry will continue in 2023. In an interview with The Street, Mark Cuban noted that most centralized cryptocurrency exchanges continue to inflate trading volumes on their sites.. And it is this fact that can become a reason for a scandal that will again draw the attention of regulators to the industry and become another blow. “I think there are tens of millions of dollars worth of deals being created with tokens that are hardly ever used.. Where do they get such popularity? I see no reason for such liquidity, ”the billionaire emphasized. True, Kuban made a reservation that he has no facts about a significant overestimation of trading volumes – this is just an assumption. Overstating trading volume is punishable by law in the US. Such manipulation allows you to make the trading platform and asset popular, and is also often part of the Pump & Dump scheme. An autumn study by the Bankless Times showed that cryptocurrency exchanges can fake at least half of the trading volume.. And according to the National Bureau of Economic Research, more than 70% of trades on unregulated exchanges are fictitious.. But even with this pumping, by the end of the year, the figure fell below $10 billion a day.