More than half of the nearly $260 billion worth of Bitcoin (BTC) trades are fake, the report said

More than the half Bitcoins BTC/USD Trading volume is fake according to data analyzed by Forbes.

What happened: Data from leading global cryptocurrency exchanges recorded $262 billion worth of Bitcoin trading volume as of June 14. According to Forbes, the true number was closer to $128 billion.

The report analyzed trading data from major exchanges such as those based in the US Coinbase Global Inc COIN, CME Group IncCME and binance, and less popular unregulated exchanges around the world, which are grouped into Group 1, Group 2, and Group 3 exchanges.

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The authenticity of the trading volume on the Group 2 and Group 3 exchanges was far less than on the Group 1 exchanges, suggesting that a significant number of the trades reported were likely fake or uneconomic.

“Group 3 consists of 36 crypto exchanges that are unregulated and small with few exceptions. Their huge self-reported volume and tiny attendance cast doubt on the possibility that a limited audience could actually generate that much trading activity,” the report reads.

It drew attention to the Hong Kong-based cryptocurrency exchange BitCoke which reports a daily trading volume of $14 billion as an example. Data from SimilarWeb shows that the exchange receives fewer than 10,000 monthly visitors, with 53% coming from Argentina alone, indicating a significant discrepancy in terms of reported volume and organic traffic.

The report confirmed Binance’s dominance in the cryptocurrency markets.

“Binance remains the £800 elephant in the room. Even after discounting its volume by 45%, Binance still generates the equivalent of 27.3% of total “real” trading volume,” the report said.

See also: IS BITCOIN A GOOD INVESTMENT?

Price Action: Bitcoin BTC/USD was trading at $19,660, down 1.9% in 24 hours at press time, according to data from Benzinga Pro.

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