So far the daily volume took off to 708m USD on Coingecko, whereas on a normal day it's around 9-10m USD. Almost 82% of that volume comes from Upbit.
I keep reading this Upbit. So is Upbit a Korean crypto exchange?
That is a huge jump in volume. In the stock market, it is considered good if the increase in price is accompanied by an increase in volume. It's like as you said, some people out there are anticipating some positive developments in days to come.
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Yes, it's Korean (you need to KYC with Korean documents to be able to deposit or withdraw). The problem is it's believed they are faking their volume through wash trading, to make their price the most relevant for crypto price aggregators.
Curious about what's wash trading. I'll check it. If it's real volume, that's good. But if they are faking it, what's the motive behind it? Only easy gain?
Task comes to your aid with the definition of wash trading.
Interesting definition. It seems legit to me. 😄
In Upbit's case, I can't confirm since I don't have an account there, but I heard during these moves fees and slippage are either zero or very low and whoever does the wash trading simply exchanges from KRW to HIVE and back until the volume goes to the roof.
That kind of wash trading is different from the meaning given in the link. That kind of practice in Upbit looks pointless. Why trade KRW to HIVE back and forth in the same exchange? 😄
Because then the price of HIVE on their exchange becomes very dominant in the formula crypto price aggregators use. If then they push the price of HIVE to 2$ or 10 cents on their exchange, that's what Coingecko and CMC pick up as the most relevant price because that's where the most volume comes from.