Exclusive: CMC accuses Binance of “tripling volume”? The truth turns out to be...

After Binance acquired CMC, the trading volume data showed an extremely strange scene. Xiong Yue, director of the Bixin Research Institute, first pointed out that Binance's adjusted data was only 1/4 of the original, while other exchanges did not change. So CMC was accusing Binance of inflating the volume?

Considering that Binance had previously removed FTX leveraged tokens, the public was wondering whether CMC, which had just been acquired, had a dispute with Binance. An investigation was also conducted on Wu's blockchain.

First, Wu said that it is a common phenomenon that spot market volume is seriously faked. The top exchanges are all second- and third-tier exchanges (many of which are from China), so it is only possible that the volume is faked more seriously. Although the ranking agencies have their own analysis models, the data source is the exchange API, and they have no ability to distinguish true from false data.

The question is, why are the institutions with more serious volume manipulations having consistent data after adjustment, while only Binance, which acquired CMC, has huge differences before and after the adjustment.

According to people close to CMC, the change in Binance’s data is because CMC may be testing a new model, so the adjusted data deleted the trading volume of derivatives.

We can see that other platforms have also started to adjust, such as OKEx in the data on April 23. The data of many mainstream platforms such as Bitfinex also began to change before and after the adjustment. Binance was the first to adjust, probably because it had some more extensive data access after the acquisition.

This also shows that according to CMC data, the trading volume of derivatives on Binance is more than twice that of spot (OK spot and derivatives are about half and half). There was data earlier saying that Binance's contract trading volume has surpassed BitMex to become the world's number one, which seems to be true. Binance's profit in the first quarter reached $262 million , a record high, which is also inseparable from the rapid development of its derivatives business.

As for why other exchanges such as Huobi are not reflected, this is mainly because no relevant APIs have been submitted to obtain data. Of course, this model and the ranking mechanism itself need to be updated. For example, how should some exchanges with derivatives as the core be ranked? In short, CMC should make the rules public in a better way to win the trust of users and avoid such somewhat ridiculous doubts.

In addition, it should be noted that since the credibility of spot trading volume is indeed not high, liquidity is actually more credible to the spot strength of the exchange.