Abstract
Cryptocurrency exchanges, which act as a platform for cryptocurrency trading, play a vital role in the ever-growing cryptocurrency market. However, with the rapid development of this emerging market, some unethical phenomena including faking trading volume have also appeared in cryptocurrency exchanges. To this end, this paper proposes a data mining-based method based on off-chain data and on-chain transaction data to detect the exchanges that fake trading volume. In particular, we first collect off-chain data from the websites of five exchanges and the on-chain data provided by a blockchain browser, and then analyze them from two perspectives, including transaction number and transaction amount. The empirical results suggest that Huobi exchange fakes trading volume most obviously, while Binance trading is relatively the most honest. In addition, different exchanges adopt distinct counterfeiting strategies when creating wash trading. (C) 2021 Elsevier B.V. All rights reserved.
NSTL
Elsevier