Is Binance wash trading? Statistics from the October 23rd fall in Bitcoin price seems to suggest they have, in a shocking development for the world’s largest exchange. 

Bitcoin has fallen dramatically, most notably on the 25th of September and there was another drop in price on October 23rd at around 12:40pm UTC and as such the trading volumes have followed suit.

Exchanges should see a reflection of this in their statistics. For example, OkEx saw its BTC spot price decline by 5% within the initial 4 minutes session on October 23rd and the quarterly Futures contract, dumped by 6.2% during the same time window. 

Almost all other derivative exchanges like Huobi and Bitmex also saw the same statistics or at least in a remotely similar fashion. Yet Binance did not. Many scratched their heads as to why this might happen?

A close look at their data in comparison to other major exchanges reveals some potentially scandalous evidence. Are Binance wash trading?

Trading Volume

The previous statement that exchanges usually see a shift in trading volume when the market is volatile is clear as the figures show below. OkEx, Bitmex and Huobi’s trading figures for the price drop on the 25th September and 23rd October present a big difference and drop.

OkEx 

Bitmex 

Huobi 

However, Binance does not show anything similar. The figures for the dates of Bitcoin price drops shows the trading differential is not as big. October 23rd shows it the most. 

Binance 

The evidence only increases for the potentail that wash trading was at play when you look at the data for a 4 hour period. 

4 Hour Period

Bitmex 

OkEx 

 Huobi

As you can see the statistic in terms of Bitcoin traded remains in large part similar between Bitmex (30K-100K), Huobi (20K-70K) and OkEx (20K-80K). But Binance is just 5K. Order book depth also unveils a darker side to Binance.

Order Book Depth

Order book depth also reveals some issues. As the figure below shows, BitMex had a quote size around 100 BTC on average ( [bid size + ask size] / 2), OKEx around 60 BTC while Binance was merely less than 2.5 BTC. 

Bitmex

OkEx and Binance’s futures trading volume was looked at and this caused more confusion. Binance had the greater amount. How can their order book be less, but their trading volume be more unless Binance had washed some trading off the books?

Okex

Binance

What do you think? Let us know in the comments below.