Opinion | Can Crypto Exchanges join in the Fight against Fake News?April 22, 2019
This is an opinion, so it will be biased. But don’t worry, it is reasonable.
The Currency Analytics listed its token on Mercatox on April 17, 2019. Mercatox is one of the best crypto exchanges out there. It comes with multiple languages and loyalty programs for its users.
The Currency Analytics is a top news platform which fights against fake news with its REAL protocol. It never gets old to show the meaning of the REAL protocol.
- REAL news based on observed events
- Ethical news written by committed, seasoned and impartial journalists
- Attributive news which is only published after all the facts are thoroughly verified
- Lasting news that can make positive contributions to the crypto community
As TCAT got listed on another exchange, what came to mind was ‘Can Crypto exchanges also join in the fight against fake news?’ But first ‘Do crypto Exchanges promote fake news?’ Fake news is information or news about occurrences which are not true. Or they are information that has been panel-beaten making them a shade of the truth.
Fake Volume and Bot Trades on Crypto Exchanges
Obviously, many exchanges today are involved in showing off fake volumes and bot trades just to affect their ratings on CoinMarketCap -CMC. Multiple investigations revealed that many of the top-rated exchanges pumped their volume just to be at the top. Fake volumes and bot trades are a form of fake information or news which mislead investors.
Just imagine seeing the price of your favorite token rose to an All-Time-High (ATH) on CMC. You went to the exchange where it is traded and got to see that it was all bot trade. When you traded the price significantly dumped.
Pumps and Dumps
Pumps and Dumps are another family of fake volumes and bot trades. The only difference is that it is mostly done by users and not the exchange itself. Pump and dump schemes are meant to rip well-meaning traders off their funds. Sometimes, these schemes tend to make their way to the news and deceive a lot of users.
Can Crypto Exchanges Do something about it?
Crypto Exchanges can begin to turn a new leaf by showing their real volumes and grow organically. Fake volumes affect the crypto space generally. People outside tend to think cryptocurrency has gotten where it has not. With fake volumes, it means that the overall cryptocurrency volume is false and we will never know its true global market capitalization.
Furthermore, Cryptocurrency exchanges can begin to do thorough investigations on the tokens they listed. Whenever they notice and unusual increase or decrease in the price of a token on their exchange, they should investigate it. Pumps and Dumps affect the reputation of exchanges. Therefore, it should be taken care of.
Finally, Crypto exchanges should make sure they check every of their press releases to make sure it is as accurate as possible.
Actually, it is a very great thing if cryptocurrency exchange will support and promote The Currency Analytics’ REAL protocol. This is to show that they support real news and abhors fake information.